What does Defense Within Limits mean? Read on to discover the definition & meaning of the term Defense Within Limits - to help you better understand the language used in insurance policies.
Defense Within Limits
A liability policy provision according to which amounts paid by the insurer to defend the insured against a claim or suit reduce the policy's applicable limit of insurance. General liability policies are ordinarily not subject to such a provision, although the standard commercial general liability (CGL) policy provides for defense of the named insured's indemnitee "within limits" when the named insured has a contractual obligation to provide such a defense. Defense within limits is more common in professional liability policies.
We hope the you have a better understanding of the meaning of Defense Within Limits.