Section 9.20 Policy Limits

• Library: Insurance Practice 2015

The basic structure of virtually any liability policy includes a policy limit, which determines where coverage ends, and a retention or deductible amount, which determines the point at which an insurer’s payment obligation begins. Some director and officer insurance policies contain an aggregate limit, which applies to both branches of coverage and includes defense costs. Other policies may include a “per loss,” “per occurrence,” or “per claim” limit in addition to the annual aggregate limit.

Both...