Which term describes the legal principle that holds a party responsible for damages as a result of an accident or action?

The term that describes the legal principle holding a party responsible for damages as a result of an accident or action is liability. Liability refers to the state of being legally responsible for something, especially in terms of financial obligations for damages or injuries caused to another party. In the context of insurance and personal injury law, establishing liability is crucial, as it determines who is accountable for paying for damages resulting from an accident. For example, if a driver is found liable for causing a car accident, they may have to compensate the injured party for medical expenses, property damage, and other related costs.

Causation relates to the relationship between an action and its effect, which helps establish liability but does not define it. Indemnity refers to a compensation agreement to restore a party to the financial position they held before a loss, but it does not directly address the responsibility aspect. Subrogation involves a right of one party to pursue a third party who caused a loss after indemnifying or compensating the insured, and it is a process rather than a legal principle about holding someone responsible. Understanding liability is fundamental in insurance and legal discussions surrounding accidents and claims.