# Liability cap clause

*Last updated: 2026-06-26*

> Unlike a full exclusion of liability, a liability cap clause limits a party's exposure to damages by setting a contractual ceiling rather than eliminating responsibility altogether.

Unlike a full exclusion of liability, a liability cap clause limits a party's exposure to damages by setting a contractual ceiling rather than eliminating responsibility altogether. The cap is typically expressed as a multiple of the freight or service charge, or as a fixed absolute amount. Carriers, freight forwarders, and airlines use these provisions to keep financial risk predictable; shippers often accept them in exchange for more competitive rates. Statutory liability limits already exist under major transport law regimes – including the CMR for road freight and the Hague-Visby Rules for sea carriage – and contract clauses may adopt or modify those ceilings. Exceptions typically apply in cases of gross negligence or wilful misconduct, and where the shipper has declared a special cargo value.

**Source:** [https://www.lawinsider.com/dictionary/liability-cap-clause](https://www.lawinsider.com/dictionary/liability-cap-clause)

## Quick Facts

| Property | Value |
|---|---|
| Term | Liability cap clause |
| Language | EN |
| Word count | 124 |
| Last updated | 2026-06-26 |
| Source | https://www.lawinsider.com/dictionary/liability-cap-clause |

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