Liability Limits
/ˌlaɪəˈbɪləti ˈlɪmɪts/
Definitions
- (n.) Statutory or contractual caps on the amount of damages or compensation a party must pay for legal liability.
The liability limits in the insurance policy capped the payout at $1 million.
Forms
- liability limit
Related terms
See also
Commentary
Liability limits are critical in contract drafting and insurance law to manage risk exposure and determine maximum financial responsibility.
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.