New York Times  Feb 8  Comment 
The decision is a rebuke of the Trump Organization and could result in millions of dollars in added costs for the company.
Insurance Journal  Feb 6  Comment 
Assurant has partnered with Vacasa, a U.S. vacation rental management company, to provide liability coverage and property insurance for Vacasa’s homeowners. Assurant’s short-term accommodations protection program will be available to the more...
Insurance Journal  Feb 2  Comment 
Global specialty insurer The Navigators Group Inc. has appointed Jacob Ingerslev to the newly created position of global practice leader for cyber liability. Ingerslev will be responsible for leading Navigators’ cyber liability practice,...
OilVoice  Feb 1  Comment 
Service companies are on alert with more than $2 billion in LLR-related costs currently accruing aga ...
Insurance Journal  Jan 25  Comment 
Allied World North America has enhanced its cyber liability offerings and related services for its U.S. managed care package policy, 365Complete. The revised policy now contains heightened cyber protection and also expands the number of managed...
Insurance Journal  Jan 23  Comment 
Verisk Analytics Inc., the Jersey City, N.J.-based data analytics provider, has acquired Arium, an independent company specializing in liability risk modeling and decision support. London-based Arium will become part of AIR Worldwide (AIR), a...
Insurance Journal  Jan 11  Comment 
As Alabama and Clemson prepared for the national college football championship game kick-off the other day, the U.S. House of Representatives passed a bill on liability rules for sports medicine physicians and athletic trainers. The Sports...
Insurance Journal  Jan 9  Comment 
The U.S. Supreme Court on Monday let stand a lower court’s decision that an online advertising site accused by three young women of facilitating child sex trafficking was protected by a federal law that has shielded website operators from...
Insurance Journal  Jan 6  Comment 
Kinsale Insurance Co. (Kinsale), a subsidiary of Kinsale Capital Group, Inc., is now offering educational institution (school board) liability coverage through its Public Entity Division. The division targets hard-to-place/distressed educational...


A liability is an accounting term for anything of value a company or an individual owes. Liabilities can include financial liabilities usually debt or fixed goods which have yet to be delivered. Publicly-traded companies are required to list a summary of their assets and liabilities every quarter on their balance sheet, where accounting rules determine how liabilities are categorized and valued. The opposite of a liability is an asset - something of positive value, or something the company owns.

Types of Liabilities

From an accounting perspective, liabilities are divided into two broad categories:

Current Liabilities

Current liabilities are debts or obligations which are due within a year. Current liabilities are reported on the company's balance sheet and include Short-Term Debt, accrued liabilities and Accounts payable.

  • Short-term bank loans: which are a form of short-term debt that the company takes out.
  • Accounts payable: which is money owed to a company, for a good or service. This includes unpaid bills.

By the principle of prudence, current liabilities are reported in the balance sheet at their least favorable valuation.

Long-Term Liabilities

Long-term liabilities are liabilities that will not be paid off or are not due within a year. Long-term liabilities are also reported on the company's balance sheet and include items such as long-term bank loans and bonds issued by the company. They are generally subject to interest payments. Examples include: company cars, computers and investment in another company.


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