A Short Contract Clause With A Big Impact: What is a Severability Clause?
Author: Lindsay A. Compton
Date: January 14, 2026
What Is a Severability Clause—and Why Your Contract Should Have One
Contracts are meant to protect each party by defining expectations, allocating risk, and providing clarity if a dispute arises. If you are a business owner, you may not realize is that one poorly drafted or unenforceable clause can put the entire contract at risk, unless the contract includes a severability clause.
Understanding what a severability clause is, and why it matters, can make the difference between enforcing your agreement and walking away with far less than you expected.
What Is a Severability Clause?
A severability clause is a provision in a contract that states if any part of the contract is found to be invalid or unenforceable, the remaining provisions will still be enforceable. In other words, if a court strikes one clause for any reason, the rest of the agreement survives.
This clause is designed to protect the integrity of the contract by preventing one problematic provision from invalidating the entire agreement.
How a Severability Clause Protects Your Business
Legal disputes don’t always arise because the entire contract is flawed. Often, the issue is limited to one specific provision, such as:
A non-compete that is too broad;
A damages clause that violates public policy; and/or
A fee-shifting or penalty provision that a court won’t enforce.
When a contract includes a severability clause, a court can remove or modify the problematic language and still enforce the remainder of the agreement as intended. This means your business can still rely on the remaining terms, such as:
Payment terms;
Scope of work;
Ownership rights;
Confidentiality provisions; and/or
Dispute resolution terms.
The Consequences of Not Having a Severability Clause
If a contract does not contain a severability clause, the outcome can be far more damaging. In that situation, if a court finds that one key provision is unenforceable, the court may determine that the entire contract is void. When that happens, the contract no longer governs the relationship at all. Instead, your business may be left with only basic legal remedies, which often mean:
You are only entitled to recover the value of services performed;
You may only recover out-of-pocket costs or materials;
You are not entitled to expected profits; and/or
You are not entitled to benefit-of-the-bargain damages.
For businesses, this can be devastating—especially if the contract was structured to protect future revenue, margins, or long-term obligations.
A Simple Clause That Prevents a Major Loss
A severability clause is typically short and easy to include, but its impact is significant. It acts as a safety net, ensuring that a single mistake, outdated provision, or aggressive clause doesn’t erase the protections you thought you had.
Too often, business owners only discover the absence of a severability clause after a dispute arises, when it’s already too late to fix.
Protect Your Contracts Before There’s a Dispute
Contracts are not just formalities; they are risk-management tools. Having agreements that are properly drafted, reviewed, and tailored to your business can prevent costly litigation and unexpected losses.
Compton Law, P.A. assists businesses with drafting, reviewing, and revising contracts to ensure they are enforceable and designed to protect your interests, including the inclusion of critical provisions like severability clauses. Whether you are entering a new agreement or relying on existing contracts, a proactive legal review can save you significant time, money, and stress.
Contact Compton Law, P.A. today to ensure your contracts truly protect your business when it matters most.
