When certain events occur that lead to unwanted or unexpected results, a party is usually sought to be held accountable for any injury or harm that became a consequence of such events. Thus, the party who is held to be accountable is the party who holds liability.
Liability can also be referred to as responsibility or accountability, since all terms refer to a party who initiated or who is answerable for whatever event happened. For example, if a car crash occurred and the individuals within the car met harm or injury because their seatbelts were not functioning properly, the carmaker or the seatbelt manufacturer is liable for whatever harm or injury suffered. Thus, liability may also refer to a party who is at fault for whatever events that may occur.
Liability does not necessarily point to negligence only, but encompasses the whole spectrum of responsibility, deliberate or accidental. When a person is liable for an accident or an event that leads to harm or injury of another party, that person can be liable for insurance or some other form of restitution that compensates the injured or harmed party. This kind of insurance is called liability insurance and creates a legal impetus for those charged with liability to compensate in commensurate terms the injured or harmed party.
Liability can also be used in numerous contexts. It can be seen as an obligation in terms of accounting, wherein money has not yet been paid despite the service or good being rendered already.