Neither Snowflake nor you can sue the other for lost profits, lost data, business interruption, or other indirect losses, even if the other party knew those losses were possible.
This analysis describes what Snowflake'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 agreement explicitly excludes recovery for lost data and business interruption, which are among the most likely and significant harms that could arise from a cloud platform failure; this provision operates in tandem with the 12-month fee cap to define the outer boundary of Snowflake's financial exposure.
This provision states that Snowflake cannot be held liable for lost data, business interruption, or lost profits arising from service failures, even where Snowflake was aware such losses were possible, which directly affects the recourse available to organizations that experience data loss or extended outages on the platform.
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"IN NO EVENT WILL EITHER PARTY HAVE ANY LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT FOR ANY LOSS OF USE, LOST DATA, LOST PROFITS, FAILURE OF SECURITY MECHANISMS, INTERRUPTION OF BUSINESS, OR ANY INDIRECT, SPECIAL, INCIDENTAL, RELIANCE, OR CONSEQUENTIAL DAMAGES OF ANY KIND, EVEN IF INFORMED OF THEIR POSSIBILITY IN ADVANCE.— Excerpt from Snowflake's Snowflake Terms of Service
REGULATORY LANDSCAPE: Consequential damages exclusions are standard in enterprise SaaS agreements and are generally enforceable under California law. However, some jurisdictions, including certain EU member states and Canada, may limit the enforceability of such exclusions in cases of gross negligence or intentional misconduct. Where data loss involves personal data, GDPR Article 82 provides data subjects with a direct right of action for material and non-material damages, which operates independently of contractual damage limitations between the controller and processor. GOVERNANCE EXPOSURE: High, for organizations where data stored on Snowflake is mission-critical. The explicit exclusion of 'lost data' as a recoverable category is particularly notable given that data loss is one of the primary risks associated with cloud storage platforms. JURISDICTION FLAGS: EU and UK customers should note that GDPR Article 82 data subject rights to compensation operate outside this contractual framework. Some Canadian provinces and EU jurisdictions may apply mandatory provisions that limit how far consequential damages exclusions can be enforced against business counterparties. Illinois and New York do not generally restrict consequential damages exclusions in B2B contracts. CONTRACT AND VENDOR IMPLICATIONS: Procurement teams negotiating enterprise agreements should consider whether carve-outs for gross negligence, willful misconduct, or data breach scenarios are achievable. The mutual nature of this exclusion (it applies to both parties) is standard but does not reduce its practical impact, since the more likely scenario of significant harm runs from Snowflake's failures to the customer rather than the reverse. COMPLIANCE CONSIDERATIONS: Business continuity and disaster recovery planning should not assume any Snowflake financial contribution to recovery costs for data loss or outage scenarios. Vendor risk assessments should document this exclusion and ensure internal budgets or insurance coverage accounts for unrecoverable losses.
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The agreement explicitly excludes recovery for lost data and business interruption, which are among the most likely and significant harms that could arise from a cloud platform failure; this provision operates in tandem with the 12-month fee cap to define the outer boundary of Snowflake's financial exposure.
This provision states that Snowflake cannot be held liable for lost data, business interruption, or lost profits arising from service failures, even where Snowflake was aware such losses were possible, which directly affects the recourse available to organizations that experience data loss or extended outages on the platform.
ConductAtlas has identified this type of provision across 2 platforms. See the full comparison.
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