A reader criticized my prior post for not explaining the term aggregate. Valid point.
Many liability insurance policies include aggregate limits of coverage. An aggregate limit is the most the policy will pay over the term of the policy (usually a year).
So, if you have a general liability insurance policy with an occurrence limit of $1 million an an aggregate limit of $2 million, you can have:
2 claims at $1,000,000 each
4 claims at $500,000 each
2 claims at $500,000 each and one at $1,000,000
You get the idea...
After the aggregate limit has been reached, you have used up your insurance. Replacement policies may be available or you may be able to convince your insurer to reinstate the aggregate for an additional premium.
In cases where the policy is for a term longer than a year, your policy may show that the aggregate applies per year or for the policy term.
Feel free to email questions or issues that you think should be answered on this blog.
Many liability insurance policies include aggregate limits of coverage. An aggregate limit is the most the policy will pay over the term of the policy (usually a year).
So, if you have a general liability insurance policy with an occurrence limit of $1 million an an aggregate limit of $2 million, you can have:
2 claims at $1,000,000 each
4 claims at $500,000 each
2 claims at $500,000 each and one at $1,000,000
You get the idea...
After the aggregate limit has been reached, you have used up your insurance. Replacement policies may be available or you may be able to convince your insurer to reinstate the aggregate for an additional premium.
In cases where the policy is for a term longer than a year, your policy may show that the aggregate applies per year or for the policy term.
Feel free to email questions or issues that you think should be answered on this blog.
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