Coverage Limit
/ˈkʌv(ə)rɪdʒ ˈlɪmɪt/
Definitions
- (n.) The maximum amount an insurer will pay under an insurance policy for a covered loss.
The policy's coverage limit was reached after the claim was paid.
Forms
- coverage limit
- coverage limits
Related terms
See also
Commentary
Coverage limits are critical in insurance contracts to define financial exposure and avoid ambiguity in claim settlements.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.