If something goes wrong with Atlassian's services and you suffer losses, the most Atlassian will pay you is the amount you paid Atlassian in the past twelve months, and neither side can claim lost profits or consequential damages from the other.
This analysis describes what Atlassian's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
The twelve-month fee cap and exclusion of consequential damages mean that customers whose organizations suffer significant operational or financial harm from a service failure may have limited contractual recovery regardless of the scope of the harm.
Interpretive note: Enforceability of consequential damage exclusions and the fee cap may vary by jurisdiction, particularly for UK and EU customers and under state consumer protection statutes.
Customers are contractually limited to recovering no more than twelve months of fees paid in any claim against Atlassian, and cannot recover lost profits, business interruption losses, or other indirect damages, regardless of the circumstances giving rise to the claim.
How other platforms handle this
TO THE MAXIMUM EXTENT PERMITTED BY LAW, NEITHER WHATNOT NOR ITS SERVICE PROVIDERS INVOLVED IN CREATING, PRODUCING, OR DELIVERING THE SERVICES WILL BE LIABLE FOR ANY INCIDENTAL, SPECIAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES, OR DAMAGES FOR LOST PROFITS, LOST REVENUES, LOST SAVINGS, LOST BUSINESS OPPORT...
In no event will either party's aggregate liability arising out of or related to this Agreement exceed the total fees paid or payable by Customer in the twelve (12) months preceding the claim. In no event will either party be liable for any indirect, incidental, special, consequential, or punitive d...
Except as stated in Section L.3.b, the liability of each party, and its affiliates and licensors, for any damages arising out of or related to these Terms (i) excludes damages that are consequential, incidental, special, indirect, or exemplary damages, including lost profits, business, contracts, re...
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"IN NO EVENT WILL EITHER PARTY'S AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT EXCEED THE TOTAL AMOUNT PAID BY CUSTOMER IN THE TWELVE (12) MONTHS PRECEDING THE CLAIM. IN NO EVENT WILL EITHER PARTY HAVE ANY LIABILITY TO THE OTHER PARTY FOR ANY LOST PROFITS, REVENUES, OR INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, COVER, BUSINESS INTERRUPTION OR PUNITIVE DAMAGES, WHETHER AN ACTION IS IN CONTRACT OR TORT AND REGARDLESS OF THE THEORY OF LIABILITY.— Excerpt from Atlassian's Atlassian Cloud Terms
REGULATORY LANDSCAPE: Limitation of liability clauses in commercial software agreements are broadly recognized under US and UK contract law, though their enforceability may be limited by statute in certain jurisdictions or where the conduct involves gross negligence, willful misconduct, or breaches of implied terms under the UK Consumer Rights Act or similar legislation. EU consumer protection directives may restrict enforcement of liability caps against individual consumers. GOVERNANCE EXPOSURE: Medium. The twelve-month fee cap is a standard commercial software provision, but the exclusion of consequential and business interruption damages creates material exposure for enterprise customers with critical operational dependencies on Atlassian products. The mutual application of the cap does not fully offset the asymmetric risk for large organizations paying lower relative fees. JURISDICTION FLAGS: UK customers should evaluate whether the cap satisfies the reasonableness test under the Unfair Contract Terms Act 1977. EU consumer-facing applications of this cap may engage national transpositions of the EU Consumer Rights Directive. California-based customers should assess whether any consumer protection statutes limit the enforceability of consequential damage exclusions in their context. CONTRACT AND VENDOR IMPLICATIONS: Enterprise procurement teams should assess whether the twelve-month fee cap is proportionate to the operational risk exposure associated with dependence on Atlassian services. Where Atlassian is a critical vendor, risk management frameworks may require insurance, contractual carve-outs, or service level agreements that provide additional remedies. COMPLIANCE CONSIDERATIONS: Legal teams conducting vendor risk assessments should document the liability cap as part of their third-party risk register and evaluate whether supplemental contractual protections or representations are available through enterprise agreement negotiations.
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The twelve-month fee cap and exclusion of consequential damages mean that customers whose organizations suffer significant operational or financial harm from a service failure may have limited contractual recovery regardless of the scope of the harm.
Customers are contractually limited to recovering no more than twelve months of fees paid in any claim against Atlassian, and cannot recover lost profits, business interruption losses, or other indirect damages, regardless of the circumstances giving rise to the claim.
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