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? What Does Professional Liability Insurance Cover When a Plan Error Becomes a Claim? Can a Structural Engineer Be Sued for a Problem They Didn’t Cause? A Client Wants You to Double Your Professional Liability Limit. What Are Your Options? What Happens to My E&O Insurance If I Close My Engineering Firm? We Asked Civil Engineers What They Wanted to Know About Insurance. Here’s What They Asked.
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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Starting out or renewing, with a policy in hand or not. If something is worth discussing, we’ll call. If not, we’ll say so.