Liability — Definition & Meaning

What does liability mean?

noun

A person or thing that is responsible for a debt or financial obligation, or a potential source of financial loss or damage. A person or thing that is a cause of danger or risk.

Example

"The company's liability for the environmental damage was estimated to be in the millions."

Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.

Words that share this root

Latin 'liabilis', from 'liber', free, and 'abilis', able Old French 'liabilite', from Latin 'liabilis'

What's another word for liability?

responsibility obligation debt risk hazard danger

What's the opposite of liability?

asset benefit advantage

Rhymes with liability

ability capacity facility utility