CHAT / IITM ENTREPRENEURS

Should a SaaS startup accept unlimited liability?

Should a SaaS startup accept unlimited liability?

Should a SaaS startup accept unlimited liability?

Amrit Vatsa

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A February 2026 thread concerned a startup’s first large enterprise deal, priced barely above cost. The customer wanted unlimited liability for wilful misconduct and a substantial liability cap for data breaches. Some members considered narrowly defined misconduct clauses familiar; others argued that an attractive customer could still be a bad deal.

Replies focused on defining misconduct precisely, clarifying responsibility for data and reflecting compliance costs in the price. Bimakavach was mentioned as a cyber-insurance intermediary one member was exploring, without a claims-experience endorsement. The discussion’s central point was proportionality: a small contract can expose a startup to a much larger loss.

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