Insurance limits and contractual liability caps answer different questions. Insurance does not automatically change a cap or cover every liability.
Questions that change the answer.
- What insurance, limits and conditions does the agreement require?
- Which liabilities fall within the cap, indemnity or exceptions?
- What do the actual policy terms cover or exclude?
Common decision positions.
A contract requires $5 million insurance and caps certain liabilities at $200,000, with exceptions. Neither figure establishes what the policy will pay.
Ask the contract reviewer which liabilities remain outside the cap. Ask the insurance adviser about relevant policy terms. Uninsured liabilities remain a business exposure.
A question for the contract discussion
“Which liabilities sit inside or outside the cap, and is the insurance requirement intended to affect it?”
Reference points
Marsh: Writing Clear Contracts for Cyber Risk Transfer. Broker commentary, not binding law; consulted 24 September 2026.
Original examples. Qualified reviewers must interpret the contract and policy.