What is an aggregate limit?

What is an aggregate limit?

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. ... Health insurance plans often carry aggregate limits.

What does per location aggregate mean?

If the general aggregate limit is on a “per location” basis, that means it will apply to each location of the policyholder. This typically is used by owners of buildings and retail stores since they have many different locations and they want aggregate limits for each location.

How does a general aggregate limit work?

The general aggregate limit is spelled out in the insurance contract and caps the number of covered losses for which an insurer will pay. ... A general aggregate limit of liability applies to all types of liability claims that the policy covers, such as property damage, bodily injury, personal, and advertising injury.

What is a per project aggregate?

In construction, insurance per project aggregate means that the coverage limit in your general liability applies to each project on which you're working. If you have $1 million in coverage, each project is covered up to $1 million in losses.

What does per occurrence and aggregate mean?

Per-occurrence limits define how much a policy will pay for any one incident or claim. Aggregate limits define how much a policy will pay over the policy's duration.