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liability

ly-uh-BIL-ih-tee /ˌlaɪəˈbɪlɪti/

nounB2GREGMATCAT

legalfinancialprofessional

The state of being legally responsible for something, especially damage, injury, or financial debt.

In insurance, liability coverage pays for damage or injuries you cause to other people or their property. It never covers your own injuries or property damage.

The story behind the word. The root 'ligare' means to bind. When you have liability, you are legally 'bound' or tied to the consequences of your actions, meaning you must pay for any harm or damage you have caused.

Word relationships

responsibility: Responsibility is a general moral or practical duty, whereas liability is a legally binding obligation to pay for damages.
accountability: Accountability refers to being answerable for actions, while liability specifically involves legal and financial exposure.

asset: An asset is a financial resource that provides value, whereas a liability is a financial obligation or debt.

Commonly confused with

collision: Collision coverage pays for damage to your own car, while liability coverage pays for damage you cause to others.

Word family

liable (adjective): Legally responsible or likely to experience something.
liabilities (noun plural): Financial debts or obligations.

Collocations

liability insurance
legal liability
accept liability
limit of liability

Example sentences

"Because he was at fault for the accident, his liability coverage paid for the repairs to the other driver's vehicle." Legal Responsibility

Memory hook

If you are 'liable', you are legally 'tied' (ligare) to the bill. Liability binds you to the bill.

When not to use

Do not use to describe a personal weakness or disadvantage unless speaking metaphorically (e.g., 'His hot temper is a liability').

Fun facts

The word 'liability' shares its root with 'ligament' (the tissue that binds bones together) and 'religion' (which historically bound people to a set of beliefs).