Shared vs. Separate Medical Liability Limits
Shared and separate medical liability limits describe how a professional liability policy allocates available limits among insured clinicians, organizations, or claims under its terms.
Definition
Shared and separate medical liability limits describe how a professional liability policy allocates available limits among insured clinicians, organizations, or claims under its terms.
The policy’s declarations, definitions, endorsements, related-claim terms and aggregate provisions determine whether limits are shared or separate and how they apply. A stated per-claim limit does not by itself establish the aggregate available for every insured. A certificate may summarize limits but does not change the policy.
Structural Components
- Per-claim limit: The policy amount stated for a claim or other defined unit, subject to the policy wording.
- Aggregate limit: The total available for claims within the specified aggregate period, subject to its terms.
- Shared limits: A limit may be available to more than one insured or allegation as the policy provides.
- Separate limits: Distinct limits may be provided for specified insureds or coverages, subject to aggregate and related-claim provisions.
- Defense costs: The policy determines whether defense costs reduce the available limits.
Parameters & Conditions
The policy’s declarations, definitions, endorsements, related-claim terms and aggregate provisions determine whether limits are shared or separate and how they apply. A stated per-claim limit does not by itself establish the aggregate available for every insured. A certificate may summarize limits but does not change the policy.
Topic Relationships
Exceptions, Limitations & Boundaries
A shared limit does not mean every person is insured. Separate stated limits do not eliminate exclusions, deductibles, retentions or aggregate restrictions. This concept does not determine whether a particular claim is covered.