The Limitation of Liability Act

The Limitation of Liability Act allows certain businesses, particularly those in shipping and transportation, to limit their financial liability in cases of damage or loss of goods. Essentially, it sets a cap on how much a company can be held responsible for, protecting them from potentially devastating claims. This law aims to encourage commerce by providing businesses with a degree of financial security, encouraging them to operate without the fear of unlimited financial consequences from unforeseen incidents. However, the specific limits and conditions can vary, so it's important for businesses to understand the details of the law.