Cohere · Cohere SaaS Agreement · View original document ↗

Limitation of Liability

Medium severity Medium confidence Explicitdocumentlanguage Common · 228 of 325 platforms
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Document Record

What it is

If something goes wrong, Cohere's total financial responsibility to you is capped at what you paid in the past twelve months, and neither side can claim indirect or consequential damages.

This analysis describes what Cohere'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

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

The twelve-month fee cap limits Cohere's maximum financial exposure regardless of the severity of a service failure or data incident, which is operationally significant for enterprise customers whose actual losses from a data breach or service outage could substantially exceed fees paid.

Interpretive note: Enforceability of the consequential damages exclusion and aggregate liability cap may vary by jurisdiction; Canadian, EU, and US courts apply different standards when evaluating whether such caps are enforceable in the context of data breaches or gross negligence.

Consumer impact (what this means for users)

The agreement limits Cohere's total liability for all claims to fees paid in the prior twelve months, meaning that if a data incident or service failure causes losses exceeding that amount, the customer's contractual recourse against Cohere is capped at that figure; consequential and indirect damages are excluded entirely.

How other platforms handle this

Whatnot Medium

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...

Anthropic Medium

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...

Unreal Engine Medium

BY AGREEING TO THE TERMS OF THIS AGREEMENT, YOU ARE ALSO AGREEING TO CONTRACTUAL TERMS THAT WILL LIMIT SOME OF YOUR LEGAL RIGHTS, INCLUDING A DISCLAIMER OF WARRANTY, AN EXCLUSION OF CERTAIN KINDS OF DAMAGES, AND A LIMITATION OF LIABILITY.

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▸ View Original Clause Language DOCUMENT RECORD
"
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 damages.

— Excerpt from Cohere's Cohere SaaS Agreement

ConductAtlas Analysis

Institutional analysis (Compliance & governance intelligence)

(1) REGULATORY LANDSCAPE: Liability caps in commercial SaaS agreements are generally enforceable in common law jurisdictions including Canada, the US, and the UK, though courts may scrutinize caps that are disproportionately low or that attempt to exclude liability for gross negligence or intentional misconduct. GDPR Article 82 establishes a separate statutory liability framework for data protection violations that may not be fully displaced by contractual liability caps; EU supervisory authority enforcement actions operate independently of contractual limitations. (2) GOVERNANCE EXPOSURE: Medium. The twelve-month fee cap is a commercially common SaaS provision, but for large enterprise deployments where annual fees may be modest relative to the value of data processed, the cap may provide inadequate contractual protection. The exclusion of consequential damages is particularly relevant for use cases where downstream business losses from a service failure could be substantial. (3) JURISDICTION FLAGS: In the EU, GDPR Article 82 provides data subjects with a right to compensation that cannot be contracted away, creating a parallel liability channel that operates independently of this contractual cap. In some US states, limitations on liability for willful misconduct or gross negligence may be unenforceable. (4) CONTRACT AND VENDOR IMPLICATIONS: Procurement teams should assess whether the liability cap is commercially acceptable given the specific deployment risk profile and the value of data being processed. Negotiation of higher liability caps or carve-outs for data breaches is a standard enterprise procurement consideration. Cyber insurance coverage should be reviewed in light of the contractual cap. (5) COMPLIANCE CONSIDERATIONS: Risk management teams should document the liability gap between the contractual cap and potential actual losses, and ensure that appropriate insurance and contractual protections are in place at other points in the data processing chain.

Full compliance analysis

Regulatory citations, enforcement risk, and due diligence action items.

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Applicable agencies

  • FTC
    The FTC has jurisdiction over unfair or deceptive commercial practices, including representations about service reliability and data security that may interact with liability limitation clauses.
    File a complaint →

Applicable regulations

EU AI Act - High Risk Provisions
EU
FTC Act Section 5
United States Federal

Provision details

Document information
Document
Cohere SaaS Agreement
Entity
Cohere
Document last updated
May 11, 2026
Tracking information
First tracked
May 11, 2026
Last verified
May 12, 2026
Record ID
CA-P-011558
Document ID
CA-D-00768
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
cf319db4fb54c8ae019dfe7b3515b554f5c486a7dd84bfbb5ce64abed79b18c3
Analysis generated
May 11, 2026 11:52 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Cohere
Document: Cohere SaaS Agreement
Record ID: CA-P-011558
Captured: 2026-05-11 11:52:52 UTC
SHA-256: cf319db4fb54c8ae…
URL: https://conductatlas.com/platform/cohere/cohere-saas-agreement/limitation-of-liability/
Accessed: May 13, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
Medium
Categories

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Frequently Asked Questions

What does Cohere's Limitation of Liability clause do?

The twelve-month fee cap limits Cohere's maximum financial exposure regardless of the severity of a service failure or data incident, which is operationally significant for enterprise customers whose actual losses from a data breach or service outage could substantially exceed fees paid.

How does this clause affect you?

The agreement limits Cohere's total liability for all claims to fees paid in the prior twelve months, meaning that if a data incident or service failure causes losses exceeding that amount, the customer's contractual recourse against Cohere is capped at that figure; consequential and indirect damages are excluded entirely.

How many platforms have this type of clause?

ConductAtlas has identified this type of provision across 228 platforms. See the full comparison.

Is ConductAtlas affiliated with Cohere?

No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Cohere.