What are Liability Limits in Insurance? 

Liability limits are the maximum amount your insurance policy will pay for covered claims involving injury or damage to others. These limits apply to various types of insurance, including auto, homeowners, renters and business insurance. If a claim exceeds your policy’s liability limit, you may be responsible for paying the remaining costs out of pocket.

How Liability Limits Affect Your Coverage

Choosing your liability limits is a key part of customizing your insurance. In Connecticut, state laws set minimum liability requirements for certain policies, such as auto insurance. However, these minimums may not be enough to fully cover you in the event of a serious accident or lawsuit. Higher liability limits can offer greater financial coverage, covering more of the costs if you’re found legally responsible for injuries or property damage.

Here are the three main types of liability limits:

• Split limits: Common in auto insurance, split limits specify separate maximum payouts for bodily injury per person, bodily injury per accident and property damage.
• Combined single limit: This type provides one total limit for all liability claims in a single incident.

• Aggregate limit: Often used in business insurance, this is the maximum your policy will pay for all claims during the policy period.

Why the Right Liability Limits Matter

Selecting appropriate liability limits is about safeguarding your assets and future. Our team can help you assess your risks and select limits that align with your needs and budget.

Do you have questions about liability limits or would you like to review your current coverage? Contact us today at AJ Gambardella Associates, LLC or visit our contact page.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.