Liability assessment analyzes whether the plaintiff can prove each element of the claim and how a jury is likely to allocate fault. It accounts for comparative fault, nonparty responsibility, and any immunities or statutory bars.
The output is typically a percentage likelihood of an adverse liability finding and an expected fault allocation.
Alternative Names:
Liability Analysis, Fault Assessment
Why it Matters?
Expressing liability as a percentage rather than a narrative is what makes it usable for valuation, since exposure is the product of liability probability and damages range. It also forces discipline: counsel who describe liability as defensible without quantifying it leave the carrier unable to set reserves or authority. In comparative fault states, the assessment must address the threshold that bars recovery entirely.
Frequently Confused with
Related terms
Frequently asked questions
Why express liability as a percentage?
What most often changes a liability assessment?
