Type of insurance plan wherein the medical liability is shifted from physicians to a health plan (e.g., health maintenance organization [HMO]). Any negligent injury to a patient under the HMO relieves individual providers of all personal liability for the injury. 2. Liability placed on each member of an industry responsible for the manufacture of a harmful or defective product. The distribution of liability is allotted by each manufacturer’s share of the market. Also termed industry-wide liability .