To enable growth while managing risk for limitation of liability, apply the following approach:
Simply, limitation of liability is about losses (economic or otherwise).
How do I talk about losses?
“The anticipated risks here should be actively managed and we need assurances if they are not. There are risks with this engagement that need to be actively managed to prevent outsized losses. If they are not actively managed, we will need economic assurances against those losses.”
How do I act on this?
Use these 5 key negotiation points
- Scope of liability protection
- Acts or omissions that trigger liability
- Any direct damage / loss limit
- Any indirect damage / loss limit
- Exclusions from loss limits
