Overall Additional Facility Limits Clause Samples

The 'Overall Additional Facility Limits' clause sets a maximum cap on the total amount of coverage or liability that can be provided under additional facilities within an agreement. In practice, this means that even if multiple additional facilities or sub-limits are available, the aggregate exposure for all such facilities cannot exceed the specified overall limit. For example, if a contract offers several types of supplemental coverage, this clause ensures that the combined payouts do not surpass a predetermined ceiling. Its core function is to control risk and prevent excessive financial exposure by establishing a clear upper boundary for all additional facility-related obligations.