Insurance Journal  Mar 4  Comment 
UCPM, Inc., an environmental insurance provider, has partnered with Great American Insurance Co. to offer the IAQ Advantage package for indoor air quality and mold liability coverage. This online program targets real estate locations including...
Insurance Journal  Mar 3  Comment 
Specialty underwriting manager Victor O. Schinnerer & Co.has made two senior appointments in its professional liability line. Jill Tellez has joined the firm in the newly created position of senior vice president, Professional Liability leader. In...
Financial Times  Mar 2  Comment 
Tobacco group and auditor part company after 17 years
Insurance Journal  Mar 2  Comment 
ACE Group has introduced a new agriculture premises pollution liability coverage that provides limited pollution liability protection in conjunction with ACE’s Agribusiness Commercial general liability policy. The expanded coverage offers...
Insurance Journal  Feb 27  Comment 
The Ohio House has passed a bill that gives legal protection to certain volunteers who provide service and expertise during emergencies. The measure gives architects, engineers, surveyors and tradespersons immunity from civil liability for errors...
Commodity Online  Feb 26  Comment 
Two economic-financial bottlenecks came to mind. No doubt you and rsquo;ve heard about the cratering Baltic Dry Index and the ongoing dock delivery failures on the West Coast. These may turn out to be good indicators of the underlying health and...
Insurance Journal  Feb 25  Comment 
College basketball’s tradition of storming the court after big upsets poses a potentially devastating liability threat to universities and athletic departments, personal injury lawyers said. Video showed coaches being pushed into tables and fans...
Forbes  Feb 24  Comment 
On October 1st, if a merchant doesn’t accept a credit card with an EMV chip, and the transaction is fraudulent, then the merchant will be liable for the costs. So merchants need to act…now.
Insurance Journal  Feb 23  Comment 
Ullico Inc.’s property and casualty insurance subsidiary, Ullico Casualty Group, Inc., may offer up to $25 million in multiemployer fiduciary liability insurance in its program with Alterra America Insurance Co., a Markel company. The $10...
Insurance Journal  Feb 20  Comment 
Rural Nevada lawmakers are proposing a bill that would improve liability protections for horse-related accidents and injuries. Sen. Pete Goicoechea and Assemblyman John Ellison introduced SB 129 to the Senate Committee on Judiciary this week....


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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