Maximum liability

(Also known as Policy limit, Annual maximum liability, Maximum Sum Insured, Aggregate limit), the Maximum liability is the maximum amount of claims that the insurer is liable to pay during a single policy period.
It limitation is used to limit the maximum loss that can be sustained by the insurance company.
The maximum liability is often calculated as a multiple of the premiums paid during a given policy period. Generaly, this maximum is included between 10 and 60.

If the total loss of a policy occurring exceeds the amount of the maximum agreed liability in one year, the insured will not be covered beyond this limit amount.