Part #1 of a 3-Part saas Training Series
A liability clause may cap exposure at 12 months’ fees, but a small redline can multiply that amount. Replacing “any and all claims” with “each claim” can turn one aggregate cap into a separate cap for every claim.
In this video, I examine structure before amount and why a vendor cannot price or insure maximum exposure if the cap resets for each claim.
Before negotiating the fee multiple or higher caps for specific risks, confirm whether the parties intend one exhaustible pot or multiple independent caps.
Next Video: Part 2 moves beyond aggregate and per-claim caps to compare the different ways liability caps are written in SaaS contracts. You will learn how accumulation, resetting and the calculation date can change the financial exposure even when the clause uses the same fee multiple.