A sublimit restricts recovery for defined exposures within the broader policy limit. Common sublimits address pollution, sexual abuse and molestation, professional services, cyber events, and specific locations or perils.
Amounts paid under a sublimit typically erode the overall limit as well.
Alternative Names:
Sub-Limit, Coverage Sublimit
Why it Matters?
Sublimits are frequently overlooked in early coverage analysis because they sit in endorsements rather than the declarations page, and discovering one after evaluating exposure against the full limit produces a serious miscalculation. In long-term care and social services accounts, abuse and molestation sublimits are often far below the policy limit and are exactly the coverage that responds to the highest-severity claims.
Frequently Confused with
Related terms
Frequently asked questions
Where are sublimits found?
Do sublimit payments erode the overall limit?
