Per Claim Limit

The Per Claim Limit usually represents a per-policy cap, meaning that it is the maximum amount that the insurer will pay for any single claim, regardless of the total amount of loss or liability incurred. This limit is typically expressed as a specific dollar amount, though insurers may also offer a percentage of the total coverage limit.

It is important to note that the Per Claim Limit does not include any legal costs or defense expenses the insurer may incur in the defense of a claim. These costs are typically excluded from the limit and will be paid separately from the policy’s coverage limit.

When considering a D&O insurance policy, it is important to note that there may be a difference between the per-claim limit and the total coverage limit. The total coverage limit is the maximum amount the insurer will pay out on all claims made under the policy. This amount can be significantly higher than the Per Claim Limit and will vary depending on the specific policy.

In summary, Per Claim Limit is a key term used in D&O insurance policies. It may refer to the maximum amount the insurer will pay for any one claim made under the policy, regardless of the total amount it may owe on multiple claims arising from the same incident. The Per Claim Limit does not include any legal costs or defense expenses, which are typically excluded from the limit. When considering a D&O insurance policy, it is important to note that there may be a difference between the per-claim limit and the total coverage limit.