Limitation of Liability Clause
A contract clause that caps how much a design firm can owe the client if something goes wrong.
What it means for your firm
It is a contract term, not an insurance term, but carriers may consider it when pricing professional liability. Contract questions should go to your attorney.
Articles that explain it
Can a Limitation of Liability Clause Affect Professional Liability Insurance Pricing? No ‘Defend’ in It, Still Worth a Second Look: Reading an Indemnity Clause After Three Rounds of Edits What an Insurer’s Contract Reviewer Looks For: 10 Clauses in a Good Design Contract Editing Contracts With AI Can Quietly Delete Your Protections “Best,” “Highest” and “Ensure”: Contract Words That Can Outrun Your Professional Liability Construction Contract Review Software: E&O When an AI Summary Gets the Deadline Wrong
General definition for education only. It is not an interpretation of any policy or contract, and it is not legal advice. The wording of your own policy and contract controls. Policies and definitions vary by insurance company.
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