Limitation of Liability

A contractual provision restricting the amount or types of damages one party can recover from another for breach or other legal claims. Limitation of liability clauses are common in privacy policies, terms of service, and vendor contracts. These provisions might cap damages at specific amounts, exclude certain types of damages (like consequential or incidental), or limit liability to amounts paid. From a privacy perspective, liability limitations affect remedies available for data breaches, rights violations, or other privacy harms. However, liability limitations have constraints—many jurisdictions prohibit limiting liability for gross negligence, willful misconduct, death, or personal injury. Privacy laws may establish rights that can't be contracted away. Organizations should understand that liability limitations don't eliminate obligations, may be unenforceable for certain violations, don't prevent regulatory enforcement or fines, and should be balanced against appropriate insurance coverage.