A limit can be one total across all losses or a separate amount for each claim. The same dollar figure protects very differently under each structure.
A per-claim limit resets with each claim, so several losses can each be covered up to the figure. A total limit is shared, so every covered loss draws from the same amount.
The arrangement we can offer carries one total limit of up to $1,000,000 across all covered losses, subject to the written terms. Ask any provider which structure it uses.
See how a single limit works.
See what stays with the employer.
See how to size it.
The right structure depends on what kind of loss you are protecting against. If your main concern is one very large failure, a high total limit covers it as long as nothing has been used up. If your concern is a steady trickle of smaller errors over several years, a per-claim limit that resets may serve better, because no single claim reduces what is available for the next.
Whichever you are offered, translate it into a scenario. Imagine three losses of moderate size in one term and see what each structure pays. Then imagine one very large loss and do the same. The comparison usually makes the structure’s strengths and limits clear faster than any description of it.
Four questions to settle before you rely on it.
It depends on how many losses you might have and how large they could be.
One total limit of up to $1,000,000 across all covered losses, subject to the written terms.
Ask and read the clause.
Ask. The written terms say.
Run the same scenarios through each: one large loss, and several moderate ones in the same term. See what each pays and what stays with you, then compare along with the cost.
It can. Ask whether claims are reviewed one at a time, how long review takes and what happens to the remaining limit after each payment.
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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.
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