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liability

ly-uh-BIL-i-tee /ˌlaɪəˈbɪlɪti/

nounB2SATACTGMAT

legalbusinessprofessional

The state of being legally responsible for something; a financial debt; or a person/thing that causes disadvantage.

In business, it refers to debts or legal risks. In casual usage, it refers to a person or thing that is a burden or embarrassment to a team.

The story behind the word. From the Anglo-French 'lier' (to bind), which comes from the Latin 'ligare' (to bind, tie). It entered English via the legal system to describe a state of being 'bound' by law to pay or perform a duty.

Word relationships

responsibility: Responsibility is a broad term for a duty, while liability specifically refers to legal or financial vulnerability if things go wrong.
drawback: A drawback is a simple disadvantage, whereas a liability (in the casual sense) is a disadvantage that actively threatens to cause failure.

asset: A useful or valuable quality, person, or thing; the opposite of a liability.

Commonly confused with

liable: Liable is the adjective (e.g., 'you are liable'), while liability is the noun (e.g., 'you have a liability').

Word family

liable (adjective): Legally responsible.
liabilities (noun): Plural form; specifically refers to a company's financial debts.

Collocations

limited liability
accept liability
legal liability

Idioms & expressions

loose cannon

Example sentences

"The company's limited liability status protected the owners' personal assets from being seized." Business Law
"With his constant penalties and poor attitude, the star player had become a liability to the team." Sports / Team Dynamics

Memory hook

Think of 're-li-ability'. A reliable person is an asset, but someone who is unreliable is a 'liability'—they tie you down with problems. A liability ties you down with legal or financial bonds.

When not to use

Do not use to describe a simple moral duty; it almost always carries a legal, financial, or practical weight.

Fun facts

The concept of 'limited liability' (which limits an investor's loss to the amount they invested) was a crucial legal innovation that enabled the rise of modern global corporations.