The maximum amount an insured can collect per occurrence is indicated by which term?

The term "Limit of Liability" refers specifically to the maximum amount an insurer is obligated to pay for a covered loss per occurrence. This means that if a claim is made, the insurer will not pay more than this specified limit for that single event, regardless of the actual loss incurred beyond that limit. It is a critical concept in insurance policies as it defines the financial exposure of the insurer and delineates the maximum protection available to the insured for any particular incident.

This definition aligns closely with the way insurance policies function, allowing both the insurer and the insured to understand the boundaries of financial responsibility clearly. The term provides clarity in the policy documentation and helps prevent misunderstandings when claims arise.

The other options, while related to insurance concepts, do not encapsulate this definition in the same precise manner. Coverage Limit and Policy Cap may suggest a similar idea but do not convey the specific emphasis that "Limit of Liability" does regarding per occurrence amounts. Maximum Liability could imply a broader context that includes total limits across multiple occurrences or a policy term, making it less specific than what is intended in this context.