What type of limit of liability does a policy have if it sets the amount for all claims arising from a single incident at $50,000?

The scenario describes a limit of liability where the insurance policy sets a specific amount applicable to claims resulting from a single incident. This indicates that the policy has a per occurrence limit.

When an insurance policy features a per occurrence limit, it means that the maximum payout for each distinct incident, or event, is capped at the stated amount—in this case, $50,000. This is structured to provide coverage for each separate claim arising from an individual incident without any aggregation of separate incidents into a single limit.

In contrast, an aggregate limit would cap the total payout across multiple incidents over a specified policy term, instead of limiting the payout for each individual incident. A single limit would apply to total liability regardless of the number of incidents, while a scheduled limit typically specifies amounts for certain types of policies or items. Thus, the defining characteristic of the policy in the question is its treatment of each distinct claim or event separately, aligning it with a per occurrence limit.