defense within limits
A liability policy provision according to which amounts paid by the insurer
to defend the insured against a claim or suit reduce the policy's applicable
limit of insurance. General liability policies are ordinarily not subject to
such a provision, although the standard commercial general liability policy
provides for defense of the named insured's indemnitee “within limits†when
the named insured has a contractual obligation to provide such a defense. Defense
within limits is more common in professional liability policies. See
Shrinking
limits defense provision.
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