Which sublimit in a liability policy defines a cap on payments for all claims from a single accident?

The sublimit referred to in this context is specifically the "Per Occurrence" limit in a liability policy. This limit establishes a cap on the total amount that the insurer will pay for all claims arising from a single incident or accident. In other words, if multiple claims result from one occurrence, the payout for all those claims combined cannot exceed this defined limit.

Understanding how the "Per Occurrence" limit works is crucial for both policyholders and insurers. It provides a level of financial protection while also establishing a clear ceiling on liability exposure for the insurer. If a situation arises where multiple parties are affected by one incident, the claims will be aggregated under this limit—not exceeding the maximum specified by the policy.

On the other hand, the "Aggregate limit" cap applies to the total payments made during a policy period for all occurrences, which is different from the per incident coverage. The term "Per Incident" can sometimes cause confusion, as it is used interchangeably by some but is not a standard term used in insurance to describe coverage limits. Finally, an "Annual limit" would refer to an overarching cap on coverage within a fiscal year rather than being specifically tied to individual incidents, which distinguishes it further from the "Per Occurrence" limit.