A sub-limit is a cap on a particular coverage that sits below the policy's overall limit. The policy might carry a two million dollar limit while restricting a specific exposure to a fraction of that. The sub-limit is the number that responds for that exposure, regardless of what the headline limit says.
Updated September 2026.
Why brokers care
Certificates show the headline limit. They rarely show sub-limits, which means a certificate can satisfy a contractual limit requirement on its face while the coverage actually available for the relevant exposure is a small fraction of it. This is one of the clearest examples of why a certificate is a summary and not a substitute for the policy.
What to check
- Whether any sub-limit applies to the exposure the contract is concerned with
- Whether the contract requires limits to be dedicated rather than shared
- Where the sub-limit appears, since it is usually in an endorsement
- Whether the sub-limit is per occurrence or annual aggregate
- Whether an umbrella above responds to the sub-limited exposure
Common mistake
Reading the headline limit as the available limit. A policy can satisfy a contractual limit requirement on its face while the coverage actually available for the relevant exposure is a fraction of it.
Limit checks are covered in the certificate review checklist.