What is Aggregate Limit?
Insurance glossary entry on BeCovered.ai for the term "Aggregate Limit": Maximum an insurer pays for all covered claims during the policy period for a coverage group. Scope: plain-language meaning for coverage discussions; confirm definitions on your policy forms.
Maximum an insurer pays for all covered claims during the policy period for a coverage group.
Understanding Aggregate Limit
General liability uses per occurrence and general aggregate. Claims-made aggregates differ. Once exhausted, defense may end—umbrella attachment points matter.
Examples
- GL $2M aggregate exhausted by multiple small claims—renewal repricing spikes.
- Products-completed operations aggregate may be separate on some forms.
Common Questions About Aggregate Limit
Per occurrence vs aggregate?
Per occurrence caps each event; aggregate caps total policy period payout across events.
Does defense erode limits?
Depends on form—some GL policies treat defense inside limits (wasting) or outside—critical for large lawsuits.
Related Insurance Types
Related Terms
Coverage Limit
The maximum amount your insurance company will pay for a covered claim.
Umbrella Insurance
Extra liability coverage that kicks in when your auto, home, or other policy limits are exceeded.
Claim
A formal request to your insurance company for payment or coverage for a loss or policy event.
Premium
The amount you pay to your insurance company for your coverage, typically monthly or annually.