Limitation of liability
A contract clause capping how much a supplier must pay if something goes wrong. Uncapped liability is a reason many small firms decline a tender or ask a clarification question.
Related terms
- Clarification question
- A question a bidder sends the buyer while a tender is open. Answers are usually shared with every bidder, without saying who asked.
- Insurance requirements
- The cover a supplier must hold to bid or sign, usually commercial general liability, professional liability (errors and omissions) and sometimes cyber insurance, at stated minimum amounts.