Insurance Terms Glossary: Definition of Liability Limits

Liability Limits

Insurance Terms Glossary

Liability Limits

li·a·bil·i·ty lim·its

\ˌlī-ə-ˈbi-lə-tē\ li-məts\

noun

The maximum amount paid by a liability policy. Typically, a policy will need to pay up to $60,000 per accident, $25,000 toward property damage per accident, and $30,000 for each injured person, though actual amounts can vary.

The insurer’s liability limits were below the minimum standard, so the policyholder made a complaint.
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