limit of liability
- noun
- Formal
- Before signing, make sure you understand the limit of liability for any potential claims.
Examples
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The plaintiff may seek recovery of excess damages above the limit of liability of the healthcare provider from the PCF.
Blog text (1) -
The insurance policy clearly states the limit of liability for property damage is $50,000.
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Homeowners should review the limit of liability in their insurance to ensure adequate coverage.
Surface Forms
Morphology
The phrase directly combines 'limit' (maximum allowed) and 'liability' (legal/financial obligation) with 'of' marking the relationship, so the meaning 'maximum amount an insurer must pay' is transparently inferable from the constituents. This possessive/compositional pattern is common cross-linguistically, making it clear to a B1 learner who knows the component words.
Etymology
Limit of liability comes from the image of a fence or line that stops how far someone must pay. Here, limit is the stopping line and liability is the money someone must pay, so the phrase means the 'maximum amount' the insurance company will pay for a loss.