How many different limits exist under the commercial form?

How many different limits exist under the commercial form?

• A. Three
• B. Four
• C. Five
• D. Six

Answer: (C)

Limit types in a commercial liability form are distinct caps on what the insurer will pay for different kinds of claims. There is a per-occurrence limit that applies to each individual incident; a general aggregate limit that caps the total for most claims during the policy period; a products-completed operations aggregate limit for claims arising from products or completed work; a personal and advertising injury limit for nonphysical torts such as libel, slander, or advertising injuries; and a medical expenses limit that covers medical costs for injuries to others within a short time frame, regardless of fault. Because these five categories capture the main ways a claim can arise under the policy, there are five different limits in the standard commercial form.

Limit types in a commercial liability form are distinct caps on what the insurer will pay for different kinds of claims. There is a per-occurrence limit that applies to each individual incident; a general aggregate limit that caps the total for most claims during the policy period; a products-completed operations aggregate limit for claims arising from products or completed work; a personal and advertising injury limit for nonphysical torts such as libel, slander, or advertising injuries; and a medical expenses limit that covers medical costs for injuries to others within a short time frame, regardless of fault. Because these five categories capture the main ways a claim can arise under the policy, there are five different limits in the standard commercial form.