The limit of indemnity is the maximum amount your insurer will pay for a claim or a series of claims under a policy. It is similar to a sum insured; however, a limit of indemnity is typically found in policies such as Professional Indemnity, Cyber Insurance, and Management Liability Insurance. 

This limit is a key component of your cover and is outlined in your Insurance Schedule and Certificate of Currency. 

Some policies have limits “per claim” and “in the aggregate,” meaning there’s also a total annual limit. For example, you might have a $2 million limit per claim and a $4 million annual limit. 

Government contracts, professional bodies, or client agreements may require a higher limit of indemnity. It’s essential to select a level that accurately reflects your exposure, not just the minimum required. 

We can assist you in determining the suitable limit of cover for your business. Contact us for additional help.