What is the maximum amount the insurer will be able to recover from the shop insurance policy if the insured's liability limit is £1,000,000?

In the context of a shop insurance policy, the liability limit represents the maximum amount that the insurer is obligated to pay in the event of a claim. When the insured's liability limit is set at £1,000,000, it clearly indicates that this is the upper threshold for any payments the insurer will make under that policy for covered events.

Choosing the option that states £1,000,000 is correct because it aligns directly with the defined liability limit established in the policy. This means that in instances of liability claims related to the shop's operations, the insurer would not pay out more than this stated limit, regardless of the potential costs involved in the claim.

Understanding this concept is crucial for policyholders and insurance professionals alike, as it directly affects both risk assessment and financial planning for businesses. Other figures offered do not reflect the maximum reimbursement stipulated in the policy, and they exceed the described liability limit, which would not be permissible under the terms of the insurance.