In a typical insurance policy, the limit of liability refers to the maximum amount the insurer will pay for covered claims under the policy. This cap can apply per claim, per occurrence, or as an aggregate limit across the entire policy period. Once the limit is reached, the insured party is responsible for any additional costs or damages. These limits are designed to protect insurers from excessive financial exposure while providing policyholders with clarity on the extent of their coverage.

In a typical insurance policy, the limit of liability refers to the maximum amount the insurer will pay for covered claims under the policy. This cap can apply per claim, per occurrence, or as an aggregate limit across the entire policy period. Once the limit is reached, the insured party is responsible for any additional costs or damages. These limits are designed to protect insurers from excessive financial exposure while providing policyholders with clarity on the extent of their coverage.