Strict Liability

The term strict liability denotes legal liability which applies even though the liable entity is not directly at fault. Strict liability applies when it is necessary that liability rest with an individual or entity, but no individual or entity is directly responsible.

Example of strict liability:

A vehicle you own suffers a technical problem in spite of being properly serviced and passing roadworthiness tests. This technical problem results in the vehicle causing an accident and injuring other people or damaging property. Because you own the car which caused the damages, legal liability rests with you even though you did not make any driving errors and there is no way you could prevent the accident.

More on this topic:
Personal liability insurance comparison
Car insurance comparison
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Daniel Dreier is editor and personal finance expert at moneyland.ch.

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