Limit of indemnity

A high limit only helps if the relevant exposure is covered.

Overall limits, sublimits, deductibles and series clauses together determine how robust the policy is in a major claim.

Policy limit

This is the agreed maximum benefit. The appropriate level depends on activities, loss potential and possible severe bodily injury claims.

Specific extensions may have materially lower limits than the general liability sum.

Deductibles affect premium and retained risk. Their structure matters especially where smaller claims are frequent.

Multiple similar losses may be aggregated as one insured event, which can affect both limits and deductibles.