It is important that policy limits are adequate to cover both the cost of defense and damages. In choosing a limit the insured must consider any number of factors including size of firm, areas of practice, claims history, case size, and any other circumstances that will help him determine the maximum loss the firm may suffer in a worse case situation. Of course, higher limits increase the policy premium. However, since few claims rise to the level of maximum possible loss the extra charge for higher limits is on a sliding scale and therefore affordable. Policy limits are available on both a single limit and on a per claim and aggregate basis. The latter allows for multiple claims up to a per claim limits that the insured has determined adequate for any one claim, and is less expensive than choosing a single limit to cover multiple claims, where no one claim exceeds the per claim limit. In other words a single claim of Rs. 3 crore would cost more than a per claim and aggregate of limit of Rs. 1 crore/Rs. 3 crore and would serve no better in described example. One final thought in choosing an adequate limit is that multiple claims that result from a single or related group of incidents usually be will be considered as one claim under most policies.