Liability Limit

Liability limit is the amount to which the insurance company will protect you on a particular policy. Your business insurance will have a bodily injury and property damage liability limit for each occurrence.

As we know, all insurance is not alike. Some policies such as a contractor's, malpractice, manufacturer or product policy will also have an aggregate limit of liability for the total amount of all claims during the policy period. We are seeing a move towards higher aggregate limits on insurance policies.

You need to know what your occurrence limit is and your aggregate total. With an understanding of the risks that your business will face then you can choose a limit and a type of policy that is best suited to your needs. Take control of your insurance. Talk to your broker or agent. Ask questions. Get answers and the help you need to manage the financial consequences of losses you cannot avoid or control.