Limit of Liability Insurance - Aggregate Limit of Liability and Occurrence Limit of Liability

The limit of liability insurance coverage in a medical professional liability insurance policy is expressed in the following format: $1M/$3M. The first amount is the occurrence limit of liability while the second amount is the aggregate limit of liability. In this example, the insurance company would pay up to $1M to settle any one claim of negligence, and in the aggregate they would settle up to three of these $1M claims. This aggregate limit of liability is the most the insurance company would pay in any one policy period. The limits of $1M/$3M are the most common limits for medical professional liability insurance because this is what most hospitals require for privileges. Many doctors feel more comfortable with higher limits, and most insurance companies will allow the physician to increase limits to at least $2M/$4M for an additional premium, with some companies willing to increase even higher.

For more information on limit of liability insurance, call our medical professional liability insurance specialist David Stowe at 603-488-1081 or send him an email.