[_Lemon_]

If you put $12k of value on their service, why do they take on that risk? Why wouldn't the risk fall squarely on your shoulders?

Why would a hosting provider take on the liability of what you host on it? If the underlying filesystem had an error that Linode could avoid and you lost data, would you expect them to replace the value that was lost? Why is it not limited (at most) to the value of the VPS itself? (I can't imagine them compensating for hardware failure either).

[tyree732]

Any business that would be running on linode could be worth potentially far more than that. What your saying here is that no one should put anything of value into a VPS, which I imagine is not something linode itself would say.

[_Lemon_]

That's not quite what I'm trying to stay.

OP's expectation was that Linode should have unlimited liability where no guarantee on their part has been made. If you expect Linode to take on the risk then you would want (and probably need) that in writing.

Otherwise, you take on the risk: which would be true wherever you hosted it without any guarantees regardless of whether it's a VPS, dedicated server, or your basement.