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For example, you may see your personal liability coverage with $100,000 listed next to it. This means your insurance company's limit of liability is $100,000, and it will pay claims up to that amount as long as the details fit what's outlined in your policy.
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW: i) [COMPANY] SHALL NOT BE LIABLE WHATSOEVER FOR INDIRECT, CONSEQUENTIAL, EXEMPLARY, OR INCIDENTAL DAMAGES, EVEN IF IT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND ii) [COMPANY]'s TOTAL LIABILITY TO CUSTOMER UNDER ALL CIRCUMSTANCES SHALL BE LIMITED TO THE ...
A limitation of liability clause, if found to be enforceable, can ?cap? the number of potential damages incurred. The liability cap may be applied to all claims that arise during the term of the agreement, or it might be restricted to specific claims.
[Section #] Limitation of Liability. Neither party shall be liable for any indirect, incidental, special, punitive, or consequential damages, or any loss of profits, revenue, data, or data use.
In particular, the limitation clause should set out: the losses each party accepts to compensate without limit (eg fraud, death and personal injury) the losses each party accepts to cap and the amount of damages a party will be liable for.