What is the typical limit of indemnity for 3rd party property damage under a commercial motor policy?

In a commercial motor policy, the typical limit of indemnity for third-party property damage is often set at £5 million. This limit is designed to cover claims made by third parties for damages to their property resulting from an accident involving the insured vehicle.

The rationale behind this specific amount is to provide a balance between ensuring adequate protection for businesses against substantial claims while also maintaining affordability for the policyholder. Given the potential for significant property damage in motor accidents, the £5 million limit is seen as a reasonable cap that can accommodate most third-party claims without leading to exorbitant premiums.

Higher limits, such as £20 million or £50 million, may be available but are less common as standard options for general commercial motor policies, often requiring special arrangements or endorsements due to increased risk and higher associated premiums. Similarly, while £10 million might be an acceptable limit, it is not as universally standard as the £5 million limit. Thus, the industry norm tends to favor the £5 million coverage as a practical baseline for businesses involved in commercial driving activities.