Definition: Insurance liabilities refers to the financial obligation that an insurer has towards its clients, usually as a result of their insurable peril or risks. This liability is typically set forth in a written contract between the insurer and the insured, detailing the scope of coverage, deductibles, policy limits, and other terms. The definition of insurance liabilities can vary depending on the specific type of insurance being purchased and the policies involved. Generally, they are considered to be financial obligations incurred by an insurer when it has accepted a risk that could potentially result in loss or damage. In essence, insurance liabilities refer to the financial responsibility that the insurer has towards its clients, whether these be natural disasters, accidents, or other risks. The definition of the word is complex and can vary depending on the specific context and nature of the policy or coverage being purchased.

insurance liabilities definition