One Stated Limit
The arrangement we can offer carries one total limit of up to $1,000,000 across all covered losses, subject to the written terms. One stated limit means every covered loss draws from the same amount.
What to know.
A single limit is simpler to understand than a separate amount for each claim, but it works differently. Several smaller losses over time add up against the same figure, so a large loss early in the term can leave less for a later one.
Ask how the limit applies over time. The written terms say whether it is a lifetime figure, an annual one or tied to the agreement term.
Where to look next.
Compare Total and Per Claim
See how the two structures differ.
Count Your Services
The limit is shared across every service you buy. See the shared limit.
Check the Dollar Amount
Is the figure large enough for your plans? See how to size it.
How a shared limit behaves over time.
Picture a single limit as a pool. A first covered loss draws it down, a second draws it down further, and what remains is what is left for the rest of the term. That is simple and predictable, but it also means the first claim matters for the later ones, which is the opposite of a per-claim limit that resets each time.
The questions that follow are practical. Does the pool refill at renewal, or is it fixed for the life of the agreement? Does it apply to every service you buy, or only to some? Can it be increased if your plan grows or you add a service? Get each answer in the written terms, not in a conversation.
Common questions on this topic.
Four questions to settle before you rely on it.
Is the limit per claim?
No. It is one total limit across all covered losses, subject to the written terms.
What happens when the limit is used up?
Further losses stay with the employer. Ask what the terms say about restoring or renewing the limit.
Does the limit renew each year?
Ask. The agreement says whether it renews, resets or runs for the whole term.
Can we see the limit in writing?
You should. Ask for the clause and read it before you rely on it.
What happens to the limit if we add services?
Ask. A single shared limit may cover every service added, which spreads one amount across more exposure. The agreement should say whether the limit can be raised.
Is a single limit better than a per-claim limit?
It depends on your exposure. A single limit is easier to understand but can be consumed by one large claim, while a per-claim limit offers more protection against repeated smaller losses. Compare each with the penalties you could face.
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General information about compliance service protections, not legal or tax advice. Plan-specific questions belong with your counsel, and we will bring them in.
Related guides.
What Hold-Harmless Protection Covers
The overview this page belongs to.
Compliance Services With Hold-Harmless Protection
What the protection is, what it covers and what to ask.
Continuation and Leave Services
The next question on the same topic.
Where the Rules Come From.
The laws and rules named on this page link to the statute or regulation they come from. This is general information, not legal or tax advice, and rules change, so check the current text.
COBRA Excise Tax (26 U.S.C. 4980B)
The tax on failures to meet COBRA continuation coverage requirements.
ERISA Civil Enforcement (29 U.S.C. 1132)
Includes the daily amounts a court may assess for failing to provide required notices.
Send us your renewal.
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The renewal letter
Your current plan summary
Contribution split by tier
Enrolled counts by tier
Four documents, two more if your group is 50 or more. Nothing else; every extra one is a reason to postpone.
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