shrinking limits defense provision
The shrinking limits defense provision provides that the expenditure of defense costs associated with a claim reduces policy limits.
Additional Information
This approach contrasts with that used in commercial general liability (CGL) policies, in which defense costs are paid in addition to policy limits. Accordingly, limits under professional liability policies must be selected so that they will be adequate to cover not only projected settlement/indemnity costs but expected defense expenses as well. This approach contrasts with that used in commercial general liability policies, in which defense costs are paid in addition to policy limits.
Synonyms
defense within limits
