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

Jet2Holidays initially denied liability, but later agreed to pay £7,000 compensation to the family.

From BBC ● Aug. 13, 2026

“Efforts to identify the responsible party were hindered by ownership transitions and liability disputes, which delayed DTSC’s enforcement activities,” she said.

From Los Angeles Times ● Aug. 11, 2026

Taking too much in a single year could push you into a higher tax bracket, so spreading withdrawals out may help you manage your tax liability.

From MarketWatch ● Aug. 11, 2026

In 2019, the airline reacquired Aeroplan for C$497 million in cash, along with the assumption of about C$2 billion in liability associated with unused Aeroplan points.

From The Wall Street Journal ● Aug. 11, 2026

And certainly not more of a liability than the typical person.

From "A Deadly Wandering: A Mystery, a Landmark Investigation, and the Astonishing Science of Attention in the Digital Age" by Matt Richtel

Private credit can be useful to insurers, matching long-duration liabilities against illiquid assets.

From MarketWatch ● Aug. 3, 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

That has contributed to liabilities of more than £1bn across the parent company.

From BBC ● Jul. 22, 2026

This points to a reduction of between $6 billion and $7 billion in financial liabilities, BNP Paribas says.

From The Wall Street Journal ● Jul. 15, 2026

The incomparably ancient kingdom of the pharaohs offered the Macedonian Greeks significant liabilities as well as important assets in their attempt to establish a new ruling dynasty in Egypt.

From "Circumference" by Nicholas Nicastro

Related Words

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