If you cause material or physical damage to another, you are "liable" for those damages: that means you are legally responsible for them and must compensate them. Civil liability is a good example of this.
The distinction between contractual and extra-contractual liability is important here:
You speak of contractual liability when the damage occurs during the performance of a contract. Think of an accident at work or professional liability.
In extra-contractual liability, a person causes damage to another without the two people having a contract between them.
Disclaimer
This page is part of a lexicon and does not provide product information or contractual details on insurance services. For specific information, please refer to the official documentation or contact your insurance agent.
