SHMC Clause Samples

The SHMC (Single Highest Maximum Content) clause sets a cap on the maximum amount of a particular substance, liability, or value that can be present or claimed under a contract. In practice, this clause might apply to insurance policies by limiting the insurer’s exposure to a single highest claim amount, or to product specifications by restricting the maximum allowable concentration of a component. Its core function is to provide certainty and manage risk by clearly defining the upper limit of responsibility or content, thereby preventing disputes and unexpected liabilities.