An AI liability clause review agent finds the limitation of liability clause and any related exclusions and carve-outs, and extracts the cap amount, the basis for it and what sits outside it.
The agent locates limitation of liability wording.
Caps, exclusions and carve-outs are extracted.
The terms are tested against playbook limits.
A plain summary shows what is capped and what is not.
Legal accepts, negotiates or escalates.
The liability view is kept on the contract.
It compares the terms with your policy, noting whether the cap is mutual, how it relates to fees or insurance, and whether key losses are excluded.
It prepares a short summary of the position and any departures, with the suggested fallback wording from your library.
Liability terms decide who pays when something goes wrong, yet they are dense and full of cross-references. A cap that looks fair can be hollowed out by a list of exclusions elsewhere.
A cap may be tied to fees paid in a period, which varies over the contract.
Items outside the cap, such as data breach, may matter more than the cap itself.
A cap may bind one party more tightly than the other.
Lists of excluded losses can remove the remedies you expected.
The right cap depends on value, data and how critical the service is.
The agent finds the liability clause, related exclusions and any carve-outs, including those in schedules.
It records the cap amount or formula, whether it is mutual, the period it applies to and the items outside it.
Each element is tested against your required positions for that deal type and value.
The agent states in plain language what the clause means for a realistic loss, using a [placeholder] value for illustration.
It proposes approved fallback wording and routes the summary to legal.
Bring a small sample and watch Flo work through it.
| Aspect | By hand | With the agent |
|---|---|---|
| Reading liability | Complex wording is read slowly. | The cap, exclusions and carve-outs are summarised. |
| Mutuality | Whether limits are one-sided is easily missed. | Each side's limit is shown separately. |
| Carve-outs | Exceptions to the cap are scattered. | Carve-outs are collected in one list. |
| Comparison | Positions are remembered, not checked. | Terms are tested against stated limits. |
| Reporting | Exposure is described in conversation. | A stored summary is available for each contract. |
| If | Then | Who decides |
|---|---|---|
| Liability is uncapped for us | Flag as high | Legal counsel |
| Cap is lower than playbook minimum | Flag the gap | Legal counsel |
| Vendor's liability is capped but ours is not | Flag as one-sided | Legal counsel |
| Carve-out removes the cap for key losses | List the carve-out | Legal counsel |
| Cap is linked to fees paid | Note the basis | Procurement lead |
| Terms meet the position | Mark within position | None |
The agent notes that the cap depends on the policy and asks for it. Legal or risk checks the cover.
Each cap is listed against its loss type. The lawyer confirms the mapping.
The agent reads the reference if available, otherwise flags it. The contract manager finds the document.
The ambiguity is shown with the competing readings. Legal decides which to accept or fix.
Talk it through with the team. We will map it to your steps and show where a person stays in control.
Agree playbook liability limits by deal size and type.
Run summaries on signed contracts and compare with legal's view.
Give lawyers the summary at the start of review.
Report exposure across the portfolio.
Track it by deal type. A low fit for one category suggests the policy is out of step with the market or the vendor base.
Quick answers to what people ask most about liability clause review.
Book a demoIt is a contract term that sets how far each party is responsible for losses and puts a ceiling, or cap, on what can be claimed. It usually lists exclusions and exceptions to the cap.
It checks the cap amount, whether it is mutual, the period, the exclusions and the carve-outs, and compares them with your policy.
No. It summarises the terms and flags departures from your policy. Lawyers decide the position.
Yes. It reads schedules and linked documents as well as the main terms, and shows where each term was found.
An auto-renewal clause is a contract term that extends the agreement for a further period unless one side gives notice by a set date.
→An indemnification clause is a contract term under which one party agrees to cover the other's losses or legal costs arising from specified events, such as third-party claims.
→Risk clause detection is the process of finding contract terms that expose a company to loss or restrict its options, such as one-sided remedies, broad exclusions or hidden obligations.
→A termination clause sets out how and when each party may end a contract, including notice periods, grounds for ending it, and what happens to fees and data afterwards.
→Bring a small sample of real items. We will show what Flo handles on its own and where it hands over to your team.
