

(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.