Insurance Journal  4 hrs ago  Comment 
XL Group’s Professional Liability arm has released a new Executive and Corporate Securities Liability policy form to protect companies and their directors and officers from what it terms “an increasingly complex litigation and regulatory...
Insurance Journal  Dec 17  Comment 
The owners of a multistate chain of nursing homes may have committed fraud by transferring liabilities to a shell company that later lost more than $2 billion in jury verdicts to families who claimed relatives died of neglect, a federal … The...
Insurance Journal  Dec 17  Comment 
OneBeacon Insurance Group Ltd. has sold the renewal rights to its lawyers professional liability business to Argo Group US, Inc., a member of Argo Group International Holdings Ltd. The transaction includes renewal rights to policies renewing on or...
Benzinga  Dec 16  Comment 
ISO is preparing insurers for the rise of commercial drones around the world by offering new and versatile coverage options. ISO is a Verisk Analytics (Nasdaq: VRSK) business. The new endorsements address the growing liability exposures...
Insurance Journal  Dec 12  Comment 
Garlock Sealing Technologies LLC, the EnPro Industries Inc. unit that filed Chapter 11 in June 2010 to address asbestos claims, won a long-fought battle with personal-injury claimants when their request to reopen the record of a trial estimating...
BusinessWeek  Dec 8  Comment 
The Supreme Court just made it painfully clear that BP has backed itself into a dangerously vulnerable position in the Gulf of Mexico spill-liability wars
New York Times  Dec 5  Comment 
The home-sharing business now has secondary coverage, which kicks in after a homeowner’s primary insurance.
Yahoo  Dec 4  Comment 
UBS said on Thursday it will set up a separate group asset and liability unit to help it manage risk in the bank's new structure, which ensures it can be broken up more easily in case of a renewed crisis. ...
Forbes  Dec 4  Comment 
Peers, a sharing economy advocacy group, is selling two new insurance products meant to protect the income streams of people who work on Airbnb, Uber, Lyft and similar platforms. One is a home liability insurance policy, and the other is a...
Insurance Journal  Nov 25  Comment 
Cyber liability insurance isn’t just for large corporations anymore. Demand for cyber liability insurance is now coming from middle-sized and small businesses, according to an insurance CEO who believes the market potential is tremendous. “Now...


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.


Please install Flash Player to view this chart.
Please install Flash Player to view this chart.
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki