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defense within limits

Defense within limits is a liability policy provision stating that amounts paid by the insurer to defend the insured against a claim or suit reduce the policy's applicable limit of insurance.

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Additional Information

General liability policies are ordinarily not subject to such a provision, although the standard commercial general liability (CGL) 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.

Related Terms

The shrinking limits defense provision provides that the expenditure of defense costs associated...