Uncapped liability ranks ahead of lenders in practice and can wipe out equity, so it is a key credit and valuation point.
Across the 3 regimes
United Kingdom
MOD sets caps contract by contract. The Innovation Standard Contract caps most contractor liability in aggregate, with indemnities carved out of the cap.
United States
No general cap in the FAR. Government indemnity for unusually hazardous or nuclear risks under Public Law 85-804 (FAR 52.250-1), and liability protection for approved anti-terrorism technology under the SAFETY Act.
EU and NATO
Set by national law and the contract.
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Related
General information on public law and standard terms as at 28 Oct 2026, not legal advice on any contract or transaction. Quoted wording is checked against the official text linked to it.