# liability cap

*Last updated: 2026-06-26*

> Unlike a liability threshold, which sets a floor below which claims are excluded, a liability cap establishes the contractual or statutory ceiling a carrier must pay for loss, damage, or delay—any amount exceeding that ceiling is barred by law or contract.

Unlike a liability threshold, which sets a floor below which claims are excluded, a liability cap establishes the contractual or statutory ceiling a carrier must pay for loss, damage, or delay—any amount exceeding that ceiling is barred by law or contract. In maritime trade, the Hague Rules and the Visby Protocol provide the foundational framework; in air freight, the Warsaw Convention set comparable limits, later updated by the Montreal Convention. For road transport, the CMR Convention applies its own caps, calculated per kilogram of gross weight. Freight forwarders and shippers must identify the applicable ceiling to assess uninsured residual exposure on high-value cargo and arrange supplementary cover accordingly. Without such caps, carriers' liability would be uninsurable, and the cost would ultimately be passed through higher freight rates.

**Source:** [https://de.wikipedia.org/wiki/Haftung](https://de.wikipedia.org/wiki/Haftung)

## Quick Facts

| Property | Value |
|---|---|
| Term | liability cap |
| Language | EN |
| Word count | 127 |
| Last updated | 2026-06-26 |
| Source | https://de.wikipedia.org/wiki/Haftung |

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