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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)
Liability coverage is what protects you if you're at fault for an accident and you hurt someone or someone's property. It's made up of two components: bodily injury liability and property damage liability. This type of car insurance doesn't cover your injuries or damage to your property.