Even if Squarespace causes significant harm to your business, such as data loss or extended downtime, the most you can generally recover is what you paid Squarespace in the past year, and in no case are indirect losses like lost profits recoverable.
This analysis describes what Squarespace'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
For businesses that depend on Squarespace for revenue-generating e-commerce or critical online presence, a damages cap tied to subscription fees paid (which may be a few hundred dollars per year) could be significantly disproportionate to actual business losses caused by platform failures or data loss.
Interpretive note: The exact dollar figures and scope of excluded damages could not be verified from the truncated document; enforceability of the full exclusion of consequential damages varies by jurisdiction and whether the user is classified as a consumer or commercial entity.
If your website experiences downtime, data loss, or other platform failures that cause real financial harm to your business, the agreement limits what you can recover from Squarespace to your subscription fees paid in the prior year, and excludes recovery for lost profits or business losses entirely.
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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"To the maximum extent permitted by applicable law, in no event shall Squarespace, its affiliates, directors, employees, agents, suppliers or licensors be liable for any indirect, incidental, special, consequential or punitive damages, including without limitation, loss of profits, data, use, goodwill, or other intangible losses, resulting from your access to or use of (or inability to access or use) the service. In no event will Squarespace's aggregate liability for all claims relating to the service exceed the greater of twenty US dollars or the amounts you paid to Squarespace in the past twelve months for the applicable service.— Excerpt from Squarespace's Squarespace Terms of Service
REGULATORY LANDSCAPE: Limitation of liability clauses are subject to scrutiny under applicable consumer protection law in the EU and UK, where the Consumer Rights Directive and Unfair Terms in Consumer Contracts Regulations may render disproportionate liability exclusions unenforceable against consumers. In the US, such caps are broadly enforceable in commercial contracts but may face unconscionability challenges in consumer contexts depending on state law. GOVERNANCE EXPOSURE: Medium. The $20 floor and twelve-month fee cap structure is standard in SaaS agreements. However, for business customers with significant revenue dependency on the platform, the practical gap between the liability cap and potential business losses is substantial and warrants risk assessment at the procurement stage. JURISDICTION FLAGS: EU and UK consumer users may find this limitation unenforceable to the extent it excludes liability for Squarespace's own negligence or breach under applicable mandatory consumer law. California's Consumer Legal Remedies Act may limit the enforceability of liability exclusions in certain consumer contexts. CONTRACT AND VENDOR IMPLICATIONS: Enterprise procurement teams should note that this clause significantly limits contractual recourse for platform failures, data loss, or extended outages. Organizations with SLA requirements or significant revenue dependency on uptime should assess whether the default limitation of liability is adequate and whether enhanced SLAs or indemnification provisions are available through enterprise agreements. COMPLIANCE CONSIDERATIONS: Legal teams advising business clients who use Squarespace should flag this cap in vendor risk assessments and recommend that clients maintain independent backups of website content and transaction data. Where EU or UK consumer exposure exists, the enforceability of this cap under mandatory local law should be evaluated separately from the agreement's stated terms.
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For businesses that depend on Squarespace for revenue-generating e-commerce or critical online presence, a damages cap tied to subscription fees paid (which may be a few hundred dollars per year) could be significantly disproportionate to actual business losses caused by platform failures or data loss.
If your website experiences downtime, data loss, or other platform failures that cause real financial harm to your business, the agreement limits what you can recover from Squarespace to your subscription fees paid in the prior year, and excludes recovery for lost profits or business losses entirely.
ConductAtlas has identified this type of provision across 228 platforms. See the full comparison.
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