What does "liability" mean in the context of forming a business?

What does "liability" mean in the context of forming a business?

Gregg Wind (Partner, Wind Bermer Hockenberg, LLP) gives expert video advice on: Can starting a business decrease my taxes? and more...

When we talk about “liability,” in the context of forming a business, we generally mean liability for product malfunction, liability for services, professional services, that are maybe not up to snuff, or liability for an error or an omission.