01 / The meaning
What it means.
The headline amount does not necessarily apply separately to every cost or every claimant. A policy may combine a per-occurrence limit, an annual aggregate and lower sublimits for selected benefits. Multiple entities or sections may share an amount. Check the words attached to the figure: they explain what the limit measures and when it can be exhausted.
Defence expenses, excesses, deductibles and reinstatement provisions can alter the practical amount available. A contractual request for a particular limit is a starting point for discussion, rather than proof that a policy matches the contract. For property, compare the limit with the valuation and settlement basis; for liability, consider how one event could affect several people.
02 / Put it in context
A practical example.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Identify whether the cap is per claim, occurrence or policy period.
- Check shared aggregates and benefit-specific sublimits.
- Establish whether defence costs and excesses affect the amount.
04 / Start a useful conversation
A question for your broker.
Which limit would apply to this particular cost and incident?
05 / Connect the terms
Keep the meaning in context.
06 / Apply it to your business
Related insurance guides.
Further reading
Read the source guidance alongside the relevant policy wording.
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
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