liability limits
Maximum payout boundaries
Liability limits are the maximum amounts an insurance policy will pay for covered claims.
Most policies cap what the insurer owes per incident and in total: The policy has liability limits of $100,000 per occurrence and $300,000 aggregate.
Higher limits cost more in premiums but provide greater protection against lawsuits and catastrophic losses.
- deductibleOut-of-pocket threshold amount
- out of pocketPaid from personal funds
- deep pocketsConsiderable financial reserves
- hold harmlessProtect against legal responsibility
- at faultDeserving blame
umbrella policy · bodily injury · risk assessment · fine print · self-insurance · breach of contract · asset protection · exclusions · premium · claims adjuster · endorsements · reserve funds · industry standards · legal precedents · contingency planning · personal injury · regulatory oversight · fiduciary duty
liability limitsunlimited liability
Personal obligation for all debts
full coverage · blanket coverage · comprehensive coverage · strict liability · umbrella coverage
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