What is a Combined Single Limit?
Combined Single Limit (CSL) is a form of liability insurance coverage that offers a single limit for claims without differentiating between bodily injury or property damage. In contrast to split limits, where separate limits apply for bodily injury per person, bodily injury per accident, and property damage, CSL simplifies this by providing a total combined amount for both.
This type of insurance limit is commonly found in auto insurance policies and can offer more flexibility in how claims are paid. For example, suppose you are involved in an accident where the bodily injury claims exceed the property damage claims. In that case, CSL allows for greater flexibility in covering the necessary expenses up to the total coverage limit.
In the context of business or personal insurance, CSL is often preferred because it reduces the risk of insufficient coverage in specific areas. If the bodily injury expenses in an accident are significantly higher, but the policyholder has a high CSL, the policy would be able to absorb those costs without being restricted by separate limits.
By choosing a combined single limit policy, individuals or businesses can simplify their insurance planning, knowing they have one comprehensive limit that can cover various types of liability claims.