What is meant by “LIABILITY LIMITS”?
Liability limits are the maximum dollar amount of indemnity an insurance carrier will pay on your behalf. Limits are broken down into two categories: the per claim limit and the aggregate limit. For each medical incident, the carrier will pay for all damages up to a maximum of the amount listed as your “per claim” limit. The “aggregate” limit applies to all claims reported during the policy year or extended reporting period. For example, if your limits are $1,000,000 per claim/$4,000,000 aggregate, your carrier will pay up to $1,000,000 in settlement or award for each professional liability claim or suit and up to $4,000,000 for all claims reported that year.
Liability limits are the maximum dollar amount of indemnity an insurance carrier will pay on your behalf. Limits are broken down into two categories: the per claim limit and the aggregate limit. For each medical incident, the carrier will pay for all damages up to a maximum of the amount listed as your “per claim” limit. The “aggregate” limit applies to all claims reported during the policy year or extended reporting period. For example, if your limits are $1,000,000 per claim/$3,000,000 aggregate, your carrier will pay up to $1,000,000 in settlement or award for each professional liability claim or suit and up to $3,000,000 for all claims reported that year.
