By Monika Zauhar and Stephanie Charlton ( September 15, 2020, 11:57 AM EDT) -- What is “absolute liability?” Absolute liability is the obligation of an insurer to indemnify an innocent third party who was injured by an insured while the insured was in violation of the insurance policy, and notwithstanding the injured claimant not being party to the insurance contract. In other words, an innocent third party is not prejudiced completely from recovery by an insured’s violation of the insurance policy....