Is an Internet Provider Liable for Loss of Data if There is a Server Failure?

Full question:

Is an email provider liable for the loss of business contact info and customer emails due to their negligence? i.e. server failure

• Category: Internet
• Date: 04/07/2025
• State: Illinois

Answer:

The answer will be determined undr contract law principles, according to the terms of the contract with the provider. Many have a disclaimer limiting their liability for losses. However, a disclaimer does not relieve a party of intentional or reckless conduct. The following is an example:

"In no event will CW Net, Inc., Inc be liable to customer, any end-user, or any third party for any claims arising out of or related to customer’s business, customers relationship with its end-users, or otherwise. CW Net, Inc., Inc shall not be liable for any damages associated with the interruption or loss of use of services, even if advised of the possibility of such damages. CW Net, Inc., Inc maximum aggregate liability to customer related to a claim arising under this agreement, under any contract, negligence, strict liability or other theory, will be limited to the total amount paid by customer to CW Net, Inc., Inc. for the services giving rise to such claim in the six (6) months prior to the occurrence of such claim. neither party will be liable under any contract, negligence, strict liability or other theory for any lost revenue, lost profits, incidental, punitive, indirect or consequential damages with respect to any subject matter of this agreement."