> Who is paying for that slice of damage you did which you did not pay for? Somebody is paying.

Lots of somebodies, possibly - after limit is reached, and company is stripped down and sold into pieces, victims and creditors might still be left with uncompensated damage or debt that cannot be collected. Some of them knew the risks and factored it into their businesses; then there's insurance, and ultimately taxpayers and the state programs.

So, as I understand it, things add up properly in the end. Limiting liability creates additional risk, which is accepted by the parties involved and then mitigated, passed around and distributed the usual way companies do it.1

Maybe I'm just a modern economy apologist, but it kinda makes sense to me. A lot of things in economy started making sense to me once I realized that risk is something that can be priced and managed. Market runs on probabilities, even if regular people rarely see it.