What Is The Aggregate Limit On A Liability Insurance Policy?

When you see the term “aggregate” on an insurance quote or policy, it is a limit stipulating the most an insurance carrier will pay for all covered losses sustained during an insurance policy term, usually a policy year. Aggregate limits are commonly included in liability policies, from general liability to professional liability. These policies have a “per occurrence” or a “per claim” limit as well.

When you look at your policy form, the liability section is laid out something like this:

BUSINESS LIABILITY LIMITS OF INSURANCE
LIABILITY AND MEDICAL EXPENSES $1,000,000
MEDICAL EXPENSES – ANY ONE PERSON $10,000
PERSONAL AND ADVERTISING INJURY $1,000,000
DAMAGES TO PREMISES RENTED TO YOU $300,000
PRODUCTS-COMPLETED OPERATIONS AGGREGATE $2,000,000
GENERAL AGGREGATE $2,000,000

The per occurence limit is the most the carrier will pay per occurence, and the aggregate is the most they’ll pay in claims during the policy period regardless of the number of claims.

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About Jim Kinmartin - Business Insurance & Risk Management Broker

Jim is a California licensed Property & Casualty AND Accident & Health insurance agent working at the ISU - Olson Duncan Insurance brokerage in Torrance, CA. He grew up in Fullerton, CA and graduated from Servite High School in Anaheim and Loyola Marymount University in Los Angeles and currently lives in Long Beach, CA. Have questions? Just ask! Or, follow Jim on Twitter at @JimKinmartin

3 responses to “What Is The Aggregate Limit On A Liability Insurance Policy?”

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