Is commercial general liability not less than $1000000 per occurrence and $2000000 in the aggregate?

Asked by: Elton Brekke  |  Last update: December 18, 2023
Score: 4.7/5 (64 votes)

Commercial General Liability Insurance policy limits shall be not less than a Combined Single Limit for Bodily Injury, Property Damage, and Personal Injury Liability of $1,000,000 per occurrence and $2,000,000 aggregate."

What is aggregate limit commercial general liability?

The maximum amount of money your insurer will pay for all the claims you file during the policy period, typically one year, is known as your aggregate limit. Aggregate limits are distinct from per-occurrence (or per-claim) limits. These refer to the maximum amount an insurer will pay for a single claim or incident.

What does 1M 2M mean in insurance?

Typical limits in a contract require a minimum of $1,000,000 per occurrence and $2,000,000 aggregate (1M/2M).

What is 2 000 000 aggregate insurance?

This means that, in this example, individual claims have a limit of $1,000,000 each, while the total policy coverage for all claims made against you within the term of your policy will not exceed $2,000,000 total.

What does 1000000 aggregate mean?

Let's say you have a $1 million aggregate limit for your general liability coverage, also known as commercial general liability (CGL) insurance. That means the $1 million limit is the maximum amount your insurance will pay for claims during the policy term.

What is the difference between per occurrence and per aggregate

15 related questions found

What is the minimum general aggregate limit?

The minimum acceptable limit for the General Aggregate is $2 million or NONE per league. Having a General Aggregate of NONE provides the broadest coverage since NONE means that there is no General Aggregate cap. In other words, there is an unlimited amount of coverage available.

What does per occurrence and aggregate mean?

The aggregate limit is the total amount the policy is obligated to pay in any one policy term, for 2 or more occurrences, subject to the per occurrence limit. So once you reach the aggregate limit, then your insurer will no longer pay out for the rest of the current term.

What is an example of aggregate limit of liability insurance?

Examples of aggregate limits

If you filed four claims in one term that cost $1 million each ($4 million total), you would be under your aggregate limit. In that case, the insurance company would continue to cover any additional claims until the payouts depleted the remaining $1 million for that period.

What does 1 million per occurrence mean?

The construction company owner above may have a $2,000,000 aggregate limit with a $1,000,000 per occurrence limit, which means his insurance company will only pay up to $1,000,000 for the damaged home.

What is the aggregate limit and occurrence limit?

The aggregate limit is usually double the occurrence limit. So in the example above, if you have a $1,000,000 per occurrence limit, you most likely will have a $2,000,000 aggregate limit. Each policy is different so make sure you review in case your coverage is different.

What is limit on aggregate?

An aggregate limit is a maximum amount an insurer will reimburse a policyholder for all covered losses during a set time period, usually one year. Insurance policies typically set caps on both individual claims and the aggregate of claims.

What is the difference between general liability and aggregate?

What Is the Difference Between General Liability and General Aggregate? General liability describes the type of insurance policy you have. Your general aggregate is the maximum limit of coverage supplied by your general liability policy within the term.

What is the occurrence limit of liability?

Per occurrence limit is the maximum amount the insurer will pay for all claims resulting from a single occurrence, no matter how many people are injured, how much property is damaged, or how many different claimants may make claims.

What is the difference between any one occurrence and in the aggregate?

For this reason, “any one claim” is also frequently referred to as “per occurrence”, “per claim” and “each and every claim”. Unlike with “in the aggregate” where the cost of each claim is deducted from the total limit available, with “any one claim” policies each claim is allocated 100% of the indemnity limit.

What is $10000 aggregate limit?

A United States person that has a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year.

What is a general liability occurrence policy?

An occurrence policy provides coverage for incidents that happen during your policy period, regardless of when you file a claim. These policies can be more expensive than a claims-made policy because of how long coverage applies.

What does occurrence mean in general liability?

In a commercial general liability (CGL) coverage form, an occurrence is an accident, including continuous or repeated exposure to substantially the same general harmful conditions.

How many limits are found in a commercial general liability policy?

Six Interrelated Limits

The CGL policy lists on the declarations six different limits. While the policy lists separately each of the six limits, it is important to recognize that the limits are all interrelated. That is, a reduction of one limit by the payment of damages will also reduce another limit.

What is the difference between commercial general liability claims made and occur?

An occurrence policy has lifetime coverage for the incidents that occur during a policy period, regardless of when the claim is reported. A claims-made policy only covers incidents that happen and are reported within the policy's timeframe, unless a “tail” is purchased.

What is the rule of aggregate?

The adjugate is defined so that the product of A with its adjugate yields a diagonal matrix whose diagonal entries are the determinant det(A). That is, where I is the n × n identity matrix. This is a consequence of the Laplace expansion of the determinant.

What is per occurrence limit commercial insurance?

Your insurance policy's per-occurrence limit is the maximum amount of money you'll get to cover a single claim. In comparison, your policy's aggregate limit is the highest amount of money the insurance company will pay you for all claims made during your policy period (usually one year).

What is a per occurrence limit in an insurance policy?

The per-occurrence limit is the most your insurance company will pay for a single covered loss under the terms of your policy.

What is the difference between per accident and per occurrence?

Generally, per accident and per occurrence mean the same thing. One occurrence is a single, uninterrupted cause that can result in one or a number of bodily injuries or property damage.

What is the occurrence limit of liability endorsement?


The limit of liability or Amount of Insurance shown on the face of this Policy, or endorsed on this Policy, is the total limit of the Company's liability applicable to each occurrence, as hereafter defined.

What is per occurrence professional liability?

Per-occurrence limit is the most your insurance company will pay for a given incident. With occurrence policies, your aggregate limit resets every year. For example, let's say you purchased a $1 million occurrence-based general liability policy. In year one, you get sued for $1 million.