Annual maximums Sample Clauses

An 'Annual maximums' clause sets a cap on the total amount that can be claimed or paid under a contract within a single year. This limit may apply to specific types of claims, such as insurance benefits or service reimbursements, and resets at the start of each new contract year. By establishing a yearly ceiling on liability or benefits, the clause helps both parties manage financial risk and predict costs, preventing excessive or unexpected payouts over the course of the agreement.