What term refers to the financial responsibility for losses caused to another person or property?

The term that refers to the financial responsibility for losses caused to another person or property is "liability losses." This concept is central to understanding both liability insurance and the legal implications of causing harm or damage to others. When one party is found to have caused another party's loss due to their actions or negligence, they may be held financially responsible for the resulting damages, which is what liability losses encompass. This can include medical expenses, property damage costs, and other associated financial burdens that arise from such incidents.

In the context of insurance, liability losses are what insurance policies aim to cover, providing protection for individuals or businesses that might face legal claims due to their actions. This emphasizes the importance of having liability coverage in place to mitigate the financial impact of such losses.

Other terms mentioned, such as negligence, tort, and duty of care, relate to legal concepts surrounding liability but do not define financial responsibility directly. Negligence refers to a failure to take reasonable care, a tort is a civil wrong that causes harm or loss, and the duty of care is a legal obligation to ensure the safety or well-being of others.