Liability Rates Clause Samples
The Liability Rates clause defines the specific limits or rates at which one party may be held financially responsible for damages, losses, or breaches under the agreement. Typically, this clause sets maximum amounts payable, outlines calculation methods for liability, or distinguishes between different types of claims, such as direct versus consequential damages. Its core function is to allocate and cap financial risk between the parties, providing predictability and protecting against excessive or unforeseen liabilities.
Liability Rates. To be determined each year; an amount equal to the combined placement program's composite liability rate as set forth in the current group policy, multiplied by revenue passenger miles, as determined by recognized standard industry methods consistent with prior practice.