Policy Limit
/ˈpɒlɪsi ˈlɪmɪt/
Definitions
- (n.) The maximum amount an insurance company will pay under a policy for a covered loss.
The policy limit on her auto insurance was $100,000 per accident.
Forms
- policy limit
- policy limits
Related terms
See also
Commentary
Policy limits are crucial in drafting insurance agreements to define exposure and prevent 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.