secondarily liable
Definition
Being secondarily liable means you are on the hook for a debt or obligation only if the primary responsible party fails to pay or perform first. Think of it as being the backup person that a creditor can come after once they have exhausted their options with the main party.
Example
If you personally guarantee a business loan, your LLC is primarily liable for repaying it, but you become secondarily liable if the business cannot make the payments.
Watch Out
Even though secondary liability sounds safer than being first in line, creditors can still come after you personally for the full amount once the primary party defaults.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.