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|
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.