Box's financial responsibility for any harm caused to you is capped at what you paid Box in the last twelve months, and Box will not pay for indirect losses such as lost business or data.
This analysis describes what Box'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
If Box experiences a data breach, extended outage, or service failure that causes significant business harm, users can only recover a limited amount equal to recent subscription fees, which may be far less than actual damages suffered.
This provision means that even in cases of significant service failure or data loss, Box's financial liability to any individual user or business is capped at twelve months of subscription fees, leaving users to absorb losses that exceed that amount.
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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 Box's aggregate liability arising out of or related to this agreement exceed the total amount paid by customer to Box in the twelve (12) month period immediately preceding the event giving rise to the claim. In no event will Box be liable for any indirect, incidental, special, consequential, or exemplary damages.— Excerpt from Box's Box Terms of Service
REGULATORY LANDSCAPE: Limitation of liability clauses are generally enforceable in commercial contracts under US law, though some states impose restrictions on their use in consumer contracts or where a party has engaged in gross negligence or willful misconduct. EU consumer protection law may impose additional constraints on liability limitations in consumer-facing agreements. GDPR Article 82 separately establishes controller and processor liability for data protection violations that may operate independently of contractual liability caps. GOVERNANCE EXPOSURE: High for enterprise customers. Organizations storing business-critical or regulated content on Box should assess the adequacy of the liability cap relative to potential losses from data incidents, service outages, or content loss. A twelve-month fee cap is a standard but potentially materially inadequate remedy for large enterprise deployments. JURISDICTION FLAGS: Some US states prohibit limitation of liability clauses in consumer contracts or where harm results from fraud or gross negligence. EU member states may further restrict contractual liability limitations in consumer contexts. California's consumer protection framework may limit enforceability of liability caps that leave consumers without meaningful remedy. CONTRACT AND VENDOR IMPLICATIONS: Procurement and legal teams negotiating enterprise agreements should seek to increase the liability cap or carve out specific scenarios (data breach, willful misconduct, IP infringement) from the cap. The exclusion of consequential damages is standard in SaaS contracts but operationally significant for businesses whose revenue depends on Box service availability. COMPLIANCE CONSIDERATIONS: Organizations should assess whether cyber insurance or other contractual protections (e.g., SLA credits, indemnification from Box in specific scenarios) adequately bridge the gap between actual potential losses and Box's capped liability. Data governance teams should document the financial risk profile of Box storage and ensure executive awareness of this limitation.
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If Box experiences a data breach, extended outage, or service failure that causes significant business harm, users can only recover a limited amount equal to recent subscription fees, which may be far less than actual damages suffered.
This provision means that even in cases of significant service failure or data loss, Box's financial liability to any individual user or business is capped at twelve months of subscription fees, leaving users to absorb losses that exceed that amount.
ConductAtlas has identified this type of provision across 228 platforms. See the full comparison.
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