Sum Insured
/ˈsʌm ɪnˈʃʊəd/
Definitions
- (n.) The maximum monetary amount an insurer agrees to pay under an insurance policy for a covered loss.
The sum insured on her property insurance policy was set at $500,000.
Forms
- sum insured
Related terms
See also
Commentary
The sum insured defines the cap of insurer liability; precise drafting avoids ambiguity in payout limits.
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.