When it comes to Liability Coverage, what are the differences between “split limits,” combined single limit or “smooth” coverage and sub-limited coverages?
Some policies place a limit on the maximum coverage they provide for Bodily Injury and Property Damage. These “split limits” appear on the policy as separate amounts. For example: $100,000 property damage, $100,000 bodily injury, $200,000 each occurrence. This is an older form of liability coverage and most insurance companies no longer write “split limits.” Combined Single Limit coverage, also known as “smooth limits,” combines your coverage for both Property Damage and Bodily Injury per occurrence into a single limit with no further limitation. In other words, regardless of whether the claim against you arises from injuries or death to persons or from damage to other’s property, the amount of protection you have is the total Combined Single Limit. It is usually expressed as a single number, for example: $1,000,000 each occurrence. In general this type of coverage provides more protection when compared to sub-limited coverage, but it is also more expensive. The most common liability c
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