In terms of liability, what does 'negligence' typically refer to?

Negligence refers to a failure to act with the level of care that a reasonably prudent person would exercise in similar circumstances. This concept is fundamental in liability cases, as it highlights the idea that individuals have a duty to avoid causing harm to others. When someone does not uphold this standard of care, resulting in injury or damage to another person, they can be deemed negligent.

This definition is aligned with the broader legal principles behind negligence, where the focus is on the actions (or inactions) that led to the harm, rather than an intentional wrongdoing or a random event. Understanding negligence is crucial for anyone in the field of insurance or liability as it forms the basis for many claims and lawsuits.