In insurance, limits on dollar coverage contained in an insurance policy. Malpractice insurance generally contains such limits on the amounts payable for an individual claim, or in the policy year, e.g. $100,000 to $200,000, and $300,000 to $600,000, respectively. Excess coverage describes insurance with limits higher than these conventional amounts. It may also be used to refer to limits on professional liability imposed by law. Several states have enacted legislation, for example, which would place a limit of $500,000 on any malpractice award. Such laws are being challenged as to their legality and, in some instances, have been ruled unconstitutional.