Deniability means the ability to deny or disown something. It is when a person can avoid admitting or being held responsible for something they said or did. Full definition
Racy situations go nowhere and the boozing and sexual laxity of films just a year earlier is more suggested than shown: a case of plausible deniability for the studio, which seems to have simply chopped out pieces of the script to stay within the bounds of decency (a subplot involving the school nurse and some sinister threat she poses just evaporates). (seanax.com)
The operation is called covert because of the element of deniability when the agent is exposed. (ghanapoliticsonline.com)
Daniel in Texas Some Christians believe that God does not actively control everything in nature, but intervenes only occasionally, thus making it possible for him to control the weather directly when it suits him, as in the case of Noah, and create miracles like appearing on toast, but allowing plausible deniability for all natural disasters that cause believers angst. (religion.blogs.cnn.com)