A liability is an expense that business owners incur when they are legally liable to pay for an incident that they are responsible for.
You may be familiar with the terms bodily injury, personal injury, and property damage from your personal auto and homeowners insurance policies. On a personal auto policy, property damage would cover damage you cause to another person's vehicle, fence, etc.
In commercial insurance bodily injury, personal injury, and property damage refer to business related scenarios. Take property damage for example, if employees were to use their personal computers at work then you would be responsible for their computers while they were being used in your office.
