What Does Operations Liability Mean?
Operations liability refers to money a business owes to a person or an entity for an expense necessary for it run effectively. This may include employee salaries, unpaid supplies, and other accounts payable.
Insuranceopedia Explains Operations Liability
A business that runs regularly often owes people or institutions money. They may be suppliers (supply), employees (salary), or the government (tax). An operating liability is an obligation that gets paid within a short period of time. It excludes, then, long-term liabilities, like a large bank loan that may take years to pay fully.