Tech Attorney Cohort

Part #1 of a 3-Part saas Training Series

Two Words That Multiply Exposure: Aggregate vs. Per-Claim Caps

Limitation of Liability Series: Structure Before Amount

Video Highlights

Aggregate versus per-claim caps
How small redlines multiply exposure
Why cap structure precedes amount

Video Recap: See how replacing “any and all claims” with “each claim” can convert one exhaustible liability cap into a new full cap for every claim.

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.

Continue the series...

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.