Which type of policy generally provides better coverage than split limits?

A single limit policy provides a more comprehensive coverage structure compared to split limits. In a single limit policy, the coverage limit applies to the total of all bodily injury and property damage claims combined, rather than being divided into separate limits for each category as seen in split limit policies. This flexibility allows for better management of claims since the insured can allocate the coverage amount as needed between bodily injury and property damage claims without any arbitrary cap on each individual component.

The advantages of a single limit policy become particularly apparent when an incident involves both types of claims. In situations where damages could exceed the limit for one category while leaving the other underutilized, a single limit ensures that the insured can access the full amount of coverage available for any combination of claims. This approach can provide peace of mind, especially in environments where risks are higher, making it an attractive option for many policyholders seeking more robust liability protection.

This policy type is particularly beneficial for businesses and high-net-worth individuals who might face larger claims and need the flexibility to cover various types of liabilities.