indirect liability

indirect liability definition - business

indirect liability

A legal obligation resulting from damages awarded to an injured party because of the negligent act of someone else. For example, a hospital may be held accountable because of the negligent behavior of one of its employees. Compare direct liability.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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