Definition of Sublimit:

  1. A limit that exists inside another limit.

Meaning of Sublimit & Sublimit Definition


What is Sublimit?

Sublimit definition is: The sum insured in an insurance policy that covers certain types of losses. There is a part of the sub-limit, and not its fulfillment, of the limit that should apply to damages. In other words, it provides the maximum amount to pay for such damage, rather than providing additional protection for such damage. In professional compensation insurance, the lower limit is usually equal to a fixed percentage of the policy's total insurance limit. For example, a lawyer's insurance policy collectively has a limit of $ 500,000, which may be a sub-limit of (10,000 (ie, 50 50,000) in damages. In US dollars or as a percentage of the limit that would otherwise apply. For example, in a commercial real estate policy with a loss limit of 2 2 million for all other reasons, There may be a minimum limit of $ 100,000 to cover flood damage. A 500,000 for earthquake damage. 25 25 for floor and ٪ 25 for dirt removal. In the same case, the lower limit is the maximum amount that the insured can insure for the type of damage to which the lower limit applies.