Our Limit of Liability Clause Samples
The "Our Limit of Liability" clause defines the maximum amount the company or insurer is obligated to pay in the event of a claim or loss under the agreement. Typically, this clause specifies a monetary cap or a set of conditions that restrict the total payout, regardless of the number of claims or the extent of damages. For example, it may state that the insurer will not pay more than $1 million for all claims arising from a single event. The core function of this clause is to allocate and limit financial risk, providing certainty for both parties about the maximum exposure in case of significant or multiple losses.
Our Limit of Liability. The limit of liability as stated on the Declarations page as applicable to "each person" is the limit of our liability for all medical expenses for bodily injury to any one person as the result of any one accident. BUT, subject to the above provision regarding “each person”, our total liability, under this endorsement, for all medical expenses for bodily injury to two or more persons as the result of any one accident will not exceed the amount of $25,000 unless an increased amount is shown on the Supplemental Declarations.
Our Limit of Liability. For loss to property, we pay the lesser of the following amounts:
a. the applicable limit of liability;
b. the amount of your interest in the property;
c. the cost of repairing or replacing the property with materials of equivalent kind and quality to the extent practicable;
d. the amount computed after applying the deductible or other limitation applicable to the loss;
e. the actual cash value of the property at the time of loss (except as provided under the Replacement Cost Provision, if applicable); or
f. (applies to mobile homes only at your option) the amount equal to the difference between the actual cash value of the property immediately before the loss and its actual cash value immediately after the loss.
Our Limit of Liability. The limit of liability as stated on the Declarations page as applicable to "each person" is the limit of our liability for all medical expenses for bodily injury to any one person as the result of any one accident. BUT, subject to the above provision regarding “each person”, our total liability, under this endorsement, for all medical expenses for bodily injury to two or more persons as the result of any one accident will not exceed the amount of $25,000 unless an increased amount is shown on the Supplemental Declarations. The Manufacturers' and Contractors' Liability Insurance Coverage (LS-3) is the standard insuring agreement forming a part of this policy. We pay up to $25,000 (or the additional amount specified on the Declarations or Supplemental Declarations) for bodily injury and property damage caused by an occurrence within the coverage territory during the policy period. The LS-3, or any substitute form shown on the Supplemental Declarations, will be included in it's entirety with this policy. The complete Manufacturers' and Contractors' Liability Insurance Coverage (or other insuring form which you select) consists of the Declarations Page, Supplemental Declarations Page, the LS-3 Booklet (or other insuring form booklet that you selected) and other endorsements which may be added, including State required endorsements. It is important that you read each part of your policy carefully to understand the coverage provided, your obligations and our obligations under the policy. Each coverage part is subject to all of the terms relating to that coverage. This policy also provides Incidental Coverages. These Incidental Coverages are subject to all of the terms of the applicable Principal Coverage. These Incidental Coverages do not increase the amount of insurance stated for the Principal Coverage.
Our Limit of Liability. Our maximum limit of liability shall not exceed the sum insured shown against each item of property insured shown in the schedule or in aggregate during any one period of insurance the total sum insured but subject to the undernoted conditions:
a) Under insurance
i) For each item of property insured covered on a reinstatement basis if at the time of loss the sum insured of the property insured is less than the cost of reinstatement at inception of the period of insurance, then our liability for any loss hereby insured will be limited to that proportion thereof which the sum insured bears to the cost of reinstatement at inception.
ii) For each item of property not insured on a reinstatement basis if at the time of loss the value of the property insured is collectively of greater value than the sum insured, then you will be considered as being your own insurer for the difference and will bear a rateable proportion of the loss accordingly
b) Reinstatement of sum insured. In event of any loss the sum insured will be automatically reinstated from the date of the loss unless there is written notice by us or you stating otherwise. You will have to pay an additional premium for this.