What does Limited Losses mean? Read on to discover the definition & meaning of the term Limited Losses - to help you better understand the language used in insurance policies.
An amount of losses whereby the size of individual claims is limited to a particular value, for example, $500,000. Losses are sometimes limited in this manner when analyzing loss experience or forecasting future losses to minimize the effect of low frequency catastrophe events on the analysis.
We hope the you have a better understanding of the meaning of Limited Losses.