limit

Limit in an insurance context is the maximum amount an insurance policy or reinsurance agreement can be called on to pay for a specified coverage. There are many approaches to structuring limits that vary by line of coverage and even different aspects of the coverage provided within a particular line of coverage.

With liability insurance, limits are generally expressed either on a per occurrence basis (e.g., per accident or event) or on an aggregate basis (e.g., all losses under a single policy, or for all policies during an underwriting period). With property insurance, a limit may apply to each insured property or on a blanket basis across all insured properties.