Provision record
Loom · Loom Terms of Service · View original document ↗

Tiered Liability Cap with Special Claims

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Document Record

What it is

The general liability cap is set at twelve months of fees paid. For claims arising from Atlassian's unauthorized disclosure of Customer Data caused by a breach of its security program obligations, a higher cap applies: two times fees paid during the preceding twelve months or US$5,000,000, whichever is lower.

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This analysis describes what Loom'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)

This provision establishes the financial ceiling on Atlassian's liability for data security failures, with the Special Claims cap creating a specific recovery ceiling for unauthorized Customer Data disclosures that may be substantially lower than actual damages for high-value enterprise data incidents.

Consumer impact (what this means for users)

Under this clause, Customer's financial recovery from Atlassian for a security breach resulting in unauthorized Customer Data disclosure is capped at two times the fees paid in the prior twelve months or US$5,000,000, whichever is less; Customer payment obligations are explicitly excluded from the general liability cap.

Cross-platform context

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▸ View Original Clause Language DOCUMENT RECORD
"
Except for Excluded Claims or Special Claims, to the maximum extent permitted by Law, each party's entire liability arising out of or related to this Agreement will not exceed in aggregate the amounts paid to Atlassian for the Products, Support and Advisory Services giving rise to the liability during the twelve (12) months preceding the first event out of which the liability arose. Customer's payment obligations under Sections 10.1 (Fees) and 10.2 (Taxes) are not limited by this Section 14.2. For Special Claims, Atlassian's aggregate liability under this Agreement will be the lesser of: (a) two times (2x) the amounts paid to Atlassian for the Products, Support and Advisory Services giving rise to the Special Claim during the twelve (12) months preceding the first event out of which the Special Claim arose, and (b) US$5,000,000. "Special Claims" means any unauthorized disclosure of Customer Data or Customer Materials caused by a breach by Atlassian of its obligations in Section 4.2 (Security Program).

Excerpt from Loom's Terms of Service

ConductAtlas Analysis

Institutional analysis (regulatory & governance intelligence)

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Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.

Applicable agencies

  • Federal Trade Commission (ftc)
    Oversees unfair or deceptive business practices and can investigate companies that mislead consumers about data collection, sharing, or use.
    Who can file: Anyone affected by the company's practices (US or international)
    What you need: Your account details, a timeline of relevant events, and a description of the specific issue
    What to expect: Complaints inform FTC enforcement priorities and investigations but do not result in individual resolution or compensation
    File a complaint →
  • State Attorney General
    State AGs in California, New York, Texas, and other states can investigate violations of state consumer protection and privacy laws, including CCPA (California), SHIELD Act (New York), and equivalents.
    Who can file: Residents of states with comprehensive privacy laws — primarily California, Virginia, Colorado, Connecticut, and Utah
    What you need: Evidence of the violation, explanation of how your state rights were affected, and your account or contact information with the company
    What to expect: Outcomes vary by state. May result in investigation, enforcement action, or requirement for the company to change practices. No direct individual compensation in most cases.

    Search "[your state] attorney general consumer complaint" to find your state's direct complaint form

Provision details

Document information
Document
Loom Terms of Service
Entity
Loom
Document last updated
May 5, 2026
Tracking information
First tracked
July 12, 2026
Last verified
July 12, 2026
Record ID
CA-P-074264
Document ID
CA-D-00564
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
f441c251830514f5a83e3398d892d775169e50249827f7ae34338762e14fe90c
Analysis generated
July 12, 2026 15:04 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Loom
Document: Loom Terms of Service
Record ID: CA-P-074264
Captured: 2026-07-12 15:04:00 UTC
SHA-256: f441c251830514f5…
URL: https://conductatlas.com/platform/loom/loom-terms-of-service/provision/CA-P-074264/tiered-liability-cap-with-special-claims/
Accessed: Sept. 26, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
High
Categories

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Frequently Asked Questions

What does Loom's Tiered Liability Cap with Special Claims clause do?

This provision establishes the financial ceiling on Atlassian's liability for data security failures, with the Special Claims cap creating a specific recovery ceiling for unauthorized Customer Data disclosures that may be substantially lower than actual damages for high-value enterprise data incidents.

How does this clause affect you?

Under this clause, Customer's financial recovery from Atlassian for a security breach resulting in unauthorized Customer Data disclosure is capped at two times the fees paid in the prior twelve months or US$5,000,000, whichever is less; Customer payment obligations are explicitly excluded from the general liability cap.

Is ConductAtlas affiliated with Loom?

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