Okuzeka
Insurance vocabulary · Coverage & Exclusions

Policy limit

Meaning in insurance, with examples

nounCommon term

In insurance, policy limit means: The highest amount an insurance company will pay, either for one claim, for one type of cost or for all claims during the policy period.

In Turkish: teminat limiti, poliçe limiti, azami limit

How it is used

Limits can apply per claim, per person, per event or in aggregate for the whole year. Customers ask to raise their limits, and any amount above the limit is not paid by the insurer. Also called the 'limit of liability' or simply the 'limit'.

Example sentences

  1. The policy limit for jewellery is 50,000 lira, so the rest of the loss is not covered.

  2. We advised the client to raise the policy limit on their liability cover after they won a larger contract.

Common collocations

  • raise the policy limit
  • per-claim limit
  • aggregate limit
  • exceed the policy limit
  • sum insuredThe maximum amount an insurance company will pay under a policy, usually based on the value of the property or the amount chosen for a life policy.
  • coverageThe protection a policy gives: which risks, losses and amounts the insurance company will pay for.
  • deductibleThe part of each loss that the customer pays before the insurance company starts paying. A higher one usually means a lower premium.
  • liability insuranceInsurance that pays for injury or damage you are legally responsible for causing to other people, including the legal costs.

More terms: Coverage & Exclusions

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This page explains English vocabulary for learners. It is not financial advice.