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.

---

liability British  

/ ˌlaɪəˈbɪlɪtɪ /

noun

1. the state of being liable

2. a financial obligation

3. a hindrance or disadvantage

4. likelihood or probability

---

liability Cultural  

1. An obligation or debt.

---

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

Because of that potential financial liability, Mejia’s office said that “Angelenos deserve full transparency from LA28 related to all spending and revenue incurred in the process of planning and executing the 2028 Olympic Games.”

From Los Angeles Times ● Oct. 16, 2026

Existing criminal and civil liability provide ample incentives to create strong safeguards so models don’t cause harm.

From The Wall Street Journal ● Oct. 9, 2026

“The person who orders the agents or officers to the polls also would face criminal liability for doing that,” he said.

From Salon ● Oct. 8, 2026

The law, which went into effect immediately, also authorizes the state tax agency to impose tax liability on individual members of a business.

From Los Angeles Times ● Oct. 6, 2026

The intent of his queries, as he soon established, was to introduce a subject the prosecution had emphatically avoided: the question of Wells’ own role in the murder plot, and his own moral liability.

From "In Cold Blood" by Truman Capote

BP’s total liabilities are seen at $34 billion at the end of 2026 and around $16 billion at end the end 2027, she writes.

From The Wall Street Journal ● Oct. 14, 2026

Wealth is measured as a family’s assets, like stocks and home equity, minus their liabilities, like mortgages and credit-card debt.

From The Wall Street Journal ● Oct. 9, 2026

The key reasons a club may fail relate to overdue payables to other teams, players or outstanding tax liabilities.

From BBC ● Oct. 7, 2026

In the Chapter 11 filing, Leslie’s reported total assets of $722.2 million and total liabilities and debt of about $1.2 billion.

From Los Angeles Times ● Oct. 7, 2026

Like a lot of girls, I became aware of the liabilities of my body early, long before I began to even look like a woman.

From "Becoming" by Michelle Obama

Random Word

Spin the wheel and learn a new word!

---

Related Words

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

---