What is a general aggregate limit in insurance?


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A general aggregate limit is the maximum total amount an insurance company will pay for all combined claims during a policy period, which is usually one year.

How It Works

  • Total Payout Cap: It acts as a financial ceiling for all covered losses under a Commercial General Liability (CGL) policy.
  • Exhaustion: Every paid claim reduces the remaining balance. Once the aggregate limit is reached, the insurer stops paying for any additional claims during that term.
  • Out-of-Pocket Risk: If your limit is exhausted, you must pay for any new claims or remaining costs yourself.

General Aggregate vs. Occurrence Limit

  • Occurrence Limit: The maximum payout for a single, individual claim or accident.
  • General Aggregate Limit: The combined maximum payout for multiple claims over the entire policy year.
  • Example: If you have a $1 million per-occurrence limit and a $2 million general aggregate limit, a single big claim can take up $1 million. You can have more claims, but once the total payouts hit $2 million, your coverage is used up for the year.