An ISR policy may contain a large overall Limit of Liability, but this does not mean that full limit applies to every type of claim.

Specific exposures can have sublimits.

What is a sublimit? #

A sublimit is a lower maximum amount available for a particular type of property, event or cost.

For example, an ISR policy might have an overall Limit of Liability of many millions of dollars while applying lower sublimits to specific exposures.

What types of cover can have sublimits? #

This varies between policies but can include matters such as:

• Flood.
• Earthquake.
• Removal of debris.
• Professional fees.
• Additional increased costs of working.
• Property temporarily removed.
• Property in the open air.
• Customers’ or suppliers’ premises.
• Prevention of access.
• Machinery breakdown.

The actual schedule needs to be reviewed.

Why are sublimits important? #

A business can appear to have a high overall policy limit while having substantially less cover for a particular exposure.

For example, a $20 million overall Limit of Liability does not automatically mean there is $20 million available for every insured event.

Webber Insurance can review important sublimits against the actual exposures of the business.