Statutory Liability

AAA

DEFINITION of 'Statutory Liability'

A legal term meaning that someone can be held responsible for a certain action or omission because of a related law that is not open to interpretation. This is a generic term that can apply to any field, not just finance, but in finance it may come up in reference to real estate transactions, stockholder obligations or the behavior of board members, to name just a few examples.

INVESTOPEDIA EXPLAINS 'Statutory Liability'

In New Zealand and Australia, businesses commonly purchase statutory-liability insurance to protect themselves from the fines, penalties and legal fees that can result from an accidental breach of law. These may include occupational health and safety laws, environmental laws and employment laws.

RELATED TERMS
  1. Board Of Directors

    An appointed or elected body or committee that has overall responsibility ...
  2. Liability

    A company's legal debts or obligations that arise during the ...
  3. Real Estate

    Land plus anything permanently fixed to it, including buildings, ...
  4. Insurance

    A contract (policy) in which an individual or entity receives ...
  5. Casualty Insurance

    A broad category of coverage against loss of property, damage ...
  6. Medigap

    Also called Medicare Supplement Insurance, Medigap is health ...
Related Articles
  1. Cover Your Company With Liability Insurance
    Home & Auto

    Cover Your Company With Liability Insurance

  2. Filling The Gaps In General Liability ...
    Home & Auto

    Filling The Gaps In General Liability ...

  3. Protect Your Company From Employee Lawsuits
    Home & Auto

    Protect Your Company From Employee Lawsuits

  4. Stock Safety: Top 3 Ways to Limit Your ...
    Options & Futures

    Stock Safety: Top 3 Ways to Limit Your ...

Hot Definitions
  1. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  2. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  3. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  6. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
Trading Center