What a cap does
A limitation clause sets the maximum you can owe if something goes wrong — often tied to fees paid under the contract. Without a cap, a single error could exceed the value of the whole project.
Carve-outs to watch
Some contracts cap ordinary losses but exclude confidentiality breaches, IP claims, or gross negligence from the limit. Read those exceptions carefully.
What to ask for
A cap at contract value or twelve months of fees is common in freelance deals. Push back on uncapped indemnities that sit alongside a low liability cap.
General information only. Not legal advice.
Review your contract