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The following is a quotation from IFRS Framework: A liability is a present obligation of the enterprise arising from past events, the settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits. â F.49(b)
Damage is physical harm that is done to something or to a part of someone's body. Coverage for flood and earthquake damage is excluded and must be purchased separately. Liability insurance covers what the policyholder is legally obligated to pay because of bodily injury or property damage caused to another person. Damage is physical harm that is done to something or to a part of someone's body.