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? Your Revenue Went Up, So Did Your Premium. How Professional Liability Is Priced, and Why Money You Pass to Consultants Still Counts Marine Surveyors and Pre-Purchase Surveys: When a Buyer Relies on Your Report Insurance for Naval Architects and Yacht Designers in Florida: What Your Policy Needs to Say Project-Specific Limits Keep Piling Up: When a Blanket Makes Sense No ‘Defend’ in It, Still Worth a Second Look: Reading an Indemnity Clause After Three Rounds of Edits
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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