Common use of Limit of insurance cover Clause in Contracts

Limit of insurance cover. 2.1 Any one claim The sum insured for any one claim (exclusive of defence costs) must be, where the insured firm is a relevant recognised body or a relevant licensed body (in respect of its regulated activities), at least £3 million, and in all other cases, at least £2 million. 2.2 No limit on defence costs There must be no monetary limit on the cover for defence costs. 2.3 Proportionate limit on defence costs Notwithstanding clauses 2.1 and 2.2, the insurance may provide that liability for defence costs in relation to a claim which exceeds the sum insured is limited to the proportion that the sum insured bears to the total amount paid or payable to dispose of the claim. 2.4 No other limit The insurance must not limit liability to any monetary amount (whether by way of an aggregate limit or otherwise) except as contemplated by clauses 2.1 and 2.3. 2.5 One claim The insurance may provide that, when considering what may be regarded as one claim for the purposes of the limits contemplated by clauses 2.1 and 2.3: (a) all claims against any one or more insured arising from: (i) one act or omission; (ii) one series of related acts or omissions; (iii) the same act or omission in a series of related matters or transactions; (iv) similar acts or omissions in a series of related matters or transactions and (b) all claims against one or more insured arising from one matter or transaction will be regarded as one claim.