They also cover liability payments for any accidents that occur on your property and medical payments for the expense of treating any person injured in those accidents. (netquote.com)
The insurer may then seek liability payments from the manufacturer of the vehicle, effectively removing from the injury victim the burden of pursuing a product liability claim. (neinstein.com)
Since the reserves are set apart using expected liability payments, if actual payments exceed expected payments, then current earnings will be overstated and the excess amount will be deducted from current earnings. (wikinvest.com)