Motorcycle Insurance Glossary - liability
An obligation that legally binds an individual or company to settle a debt. When one is liable for a debt, they are responsible for paying the debt or settling a wrongful act they may have committed.
For example, if John hits Jane's motorcycle, John is liable for the damages to Jane's motorcycle because John is responsible for the damages - which is where (assuming adequate insurance cover is in place), his motorcycle insurance company will be contractually liable to pay these debts on his behalf.
Motorcycle manufacturer's liability is a legal concept in most countries that reflects the fact that producers have a responsibility not to sell a defective product.
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