What Does ‘Combined Single Limit’ (CSL) Mean On A Commercial Auto Insurance Policy?

What Does ‘Combined Single Limit’ (CSL) Mean On A Commercial Auto Insurance Policy?

When reviewing your commercial auto insurance policy, you may come across the term Combined Single Limit (CSL). This is one of the most important coverage features on your policy because it determines how much protection your business truly has in the event of an accident.

In this post, we’ll break down what CSL means, how it works, and why it’s often preferred over split limits.

What Is Combined Single Limit (CSL)?

A Combined Single Limit (CSL) is the maximum amount your insurance company will pay out for all liability claims resulting from a single accident. Unlike split limits, which separate coverage into different categories, CSL combines everything into one total dollar amount.

For example, if you carry a $1 million CSL, your insurer will pay up to $1 million for all bodily injury and property damage claims from one incident—regardless of how those costs are divided.

CSL vs. Split Limits

With split limits, your coverage is divided into categories, such as:

• Bodily Injury per person (e.g., $250,000)
• Bodily Injury per accident (e.g., $500,000)
• Property Damage per accident (e.g., $100,000)

In contrast, CSL liability simplifies the structure. Instead of being capped by categories, your business can use the full limit where it’s needed most. This flexibility can be crucial in large claims.

Why Businesses Prefer CSL Coverage

Many businesses choose CSL liability coverage because of its advantages, including:

• Simplified claims process – one number, less confusion.
• Flexibility – funds can be applied to whichever losses are highest.
• Meeting contract requirements – many clients and municipalities require minimum CSL limits, often $1 million.
• Protection from large claims – particularly important for fleets, heavy-duty vehicles, or high-risk industries.

CSL and Uninsured/Underinsured Motorist Coverage

CSL can also apply to uninsured and underinsured motorist coverage. This is especially critical in states like Michigan, where the percentage of uninsured drivers is among the highest in the country. If your business vehicle is hit by someone without sufficient insurance, CSL coverage helps protect your company from massive out-of-pocket costs.

CSL and Umbrella Policies

For businesses with higher exposure, a commercial umbrella insurance policy can sit on top of your CSL liability. This provides extra protection if a claim exceeds your primary commercial auto liability limit, giving your business a much larger safety net.

Final Thoughts

A Combined Single Limit (CSL) for your liability coverage on your commercial auto insurance is one of the most important features of the policy. It simplifies coverage, offers greater flexibility, and provides essential protection for your business.

Whether you operate a small fleet or manage dozens of vehicles, understanding CSL—and ensuring you have the right limit in place—can protect your business from devastating financial losses.