What does Policy Limit mean? Read on to discover the definition & meaning of the term Policy Limit - to help you better understand the language used in insurance policies.
A policy limit refers to the monetary amount that an insurance company will pay out in relation to a specific insurance policy claim. It refers to the maximum amount of money for which an insurance company is responsbile. For example, a car insurance policy may have a policy limit of $1 million. This means that the most the insurance company will pay if you make a claim is $1 million.
We hope the you have a better understanding of the meaning of Policy Limit.