Glossary

Aggregate limit

The most an insurer will pay for all covered claims during a policy period, however many separate occurrences or claims there are.

Also called: annual aggregate, policy aggregate, aggregate

An aggregate limit caps the total the insurer pays over the policy period, usually a year. A per-occurrence limit caps any single event; the aggregate caps the sum of all of them. Payments erode the aggregate, and once it is gone the insurer owes nothing more for that period, even for a new claim.

A standard commercial general liability policy shows, for example, $1 million per occurrence and $2 million general aggregate. Say a contractor has three unrelated claims that settle at $900,000, $900,000 and $600,000. The first two use up $1.8 million of the aggregate, and the third gets only the remaining $200,000. Under ISO CG 00 01 the products-completed operations aggregate is tracked separately from the general aggregate.

Many contracts and larger accounts call for a per-project or per-location aggregate (ISO endorsements CG 25 03 and CG 25 04), so one job's claims cannot drain the limit available to another. Defense costs sit outside the limit on a standard CGL but inside it on many professional liability forms, which erodes the aggregate faster. See commercial policy limits explained, and ask your broker where an umbrella policy picks up when the aggregate runs out.

Last reviewed October 10, 2026

In the index now

Related terms

Per-occurrence limit The most a liability policy will pay for all damages arising from a single occurrence, however many people are hurt or claims are made. General aggregate The most a general liability policy pays in one policy period for all claims other than products-completed operations, however many occurrences there are. Products-completed operations aggregate The most a general liability policy pays per policy period for injury or damage in the products-completed operations hazard, apart from the general aggregate. Umbrella policy A liability policy that adds limits above underlying general liability, auto and employers' liability policies and may cover some claims they do not. Defense costs The attorney fees, expert fees and other expenses of fighting a claim, which some policies pay on top of the limit and others deduct from it.

Related guides

Commercial policy limits: per occurrence, aggregate and sublimits How per-occurrence limits, aggregates and sublimits work in CGL, property and workers' comp policies, with an example of an aggregate running out. Contractor license insurance and bond requirements by state What each state's contractor license requires in liability insurance, workers' comp proof and bonds, for all 50 states and DC, from the agencies' own rules. War and state-backed attack exclusions in cyber policies What cyber war and state-backed attack exclusions say, how the NotPetya cases and Lloyd's 2023 rules shaped them, and what to check in your policy wording. Defense costs inside vs outside policy limits: why it matters Whether legal fees erode your liability limit changes what a policy is worth. Which forms pay defense on top, which erode the limit, and what to ask first. How much liability insurance does a business need? Most small businesses start at $1 million per occurrence and $2 million aggregate. What pushes limits higher, when an umbrella fits, and a worked example. Level-funded health plans: how they work, who they suit and the catches A level-funded plan is a self-funded plan with a fixed monthly payment, built-in stop-loss and a possible refund. How it works, who it suits, and what to check.

Related en español

¿Cuánto seguro de responsabilidad civil necesita su negocio? Casi todo negocio pequeño empieza con $1 millón por ocurrencia y $2 millones en el agregado. Qué sube los límites, cuándo conviene un paraguas y un ejemplo.