What does Limit of Liability mean? Read on to discover the definition & meaning of the term Limit of Liability - to help you better understand the language used in insurance policies.
Limit of Liability
A limit of liability is the most an insurance company would pay a policy holder who loses a lawsuit. The policy terms explain exactly how much. In case the policy holder is sued and owes more than the limit of liability provided in the coverage, they would need to pay the rest for the damages out-of-pocket.
We hope the you have a better understanding of the meaning of Limit of Liability.