What type of insurance policy provides a limit for all liability, regardless of how it is apportioned?

A single limit insurance policy specifies a single maximum payout for all claims arising from a single incident, without distinguishing between different types of liability coverage. This means that if a policyholder is involved in an incident that results in multiple liability claims, the total payouts for all those claims cannot exceed that predetermined amount.

This structure simplifies the claims process because it doesn't require the insured to keep track of separate limits for bodily injury and property damage. Instead, it provides a single, consolidated amount that can be applied toward any valid liability claim, making it flexible and straightforward for policyholders to understand how much coverage they have available.

In contrast, other types of limits, like aggregate limits, specify maximum payouts over a policy period but may limit the amount available for individual claims. Split limits separate coverage into categories, often specifying different amounts for bodily injury and property damage, which can complicate how coverage is utilized following an incident.