liability

American  

[lahy-uh-bil-i-tee] / ˌlaɪ əˈbɪl ɪ ti /

noun

• liabilities
  plural

1. liabilities,

   1. Finance. moneys owed; debts or pecuniary obligations (opposed to assets).

   2. Accounting. liabilities as detailed on a balance sheet, especially in relation to assets and capital.

2. something disadvantageous.

   His lack of education is his biggest liability.

3. Also liableness the state or quality of being liable.

   liability to disease.

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liability British  

/ ˌlaɪəˈbɪlɪtɪ /

noun

1. the state of being liable

2. a financial obligation

3. a hindrance or disadvantage

4. likelihood or probability

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liability Cultural  

1. An obligation or debt.

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Other Word Forms

Derived Forms

• nonliability
  noun
• preliability
  noun

Inflected Forms

Nouns

• liabilities
  plural

Etymology

Origin of liability

First recorded in 1785–95; li(able) + -ability

Explanation

A liability is a debt or obligation or a personal flaw that stands in your way. A company's liabilities are simply the debts on its ledger, but a personal liability might be your extreme shyness in social situations. Depending on how you use it, the word liability has very different meanings. In a business or financial sense, a liability is a debt or fiscal obligation, like a mortgage or a loan. A limited liability company means if the company fails, the partners are on the hook for only what they initially invested in the company. A personal liability, however, is some element of your past, your character, or your behavior that might give you a disadvantage.

Example Sentences

See Examples For:

liability liabilities

The party said this would be similar to the personal liability of senior managers for the financial misconduct of their firms under Financial Conduct Authority rules.

From BBC ● Aug. 5, 2026

And what a liability it would be if that candidate couldn’t.

From Slate ● Aug. 5, 2026

The task force pushed for grants rather than a tax credit, arguing that budgets this small don’t generate enough tax liability for a credit to be worth much.

From Los Angeles Times ● Aug. 5, 2026

My car was nearly 20 years old, and I only carried liability and uninsured motorist coverage, not collision.

From MarketWatch ● Aug. 3, 2026

In Stanleyville we quickly saw I was a liability, even more than in Bulungu.

From "The Poisonwood Bible" by Barbara Kingsolver

And keep in mind, higher longer-term rates can provide a boost to bank earnings, as they earn more spread between long-term assets, like loans, that they fund with lower-rated shorter-term liabilities.

From MarketWatch ● Jul. 26, 2026

Nehls only disclosed a handful of bank accounts, stock and a mutual fund — all worth less than $15,000, while listing liabilities in the form of revolving credit from three credit card companies.

From Salon ● Jul. 24, 2026

Pension funds and insurers that need to match the durations of their liabilities with similar assets snap up the longest-dated bonds even when yields are absurdly low.

From The Wall Street Journal ● Jul. 22, 2026

Confirmation that the damage was caused by an external object could affect Ryanair or Boeing's liabilities over the incident.

From BBC ● Jul. 21, 2026

The durability of the empire is compelling evidence that the assets outweighed the liabilities.

From "Circumference" by Nicholas Nicastro

Related Words

• damage
• inconvenience
• involvement
• loan
• mortgage
• obligation
• responsibility