Insurance Defense and Coverage
Policy Anatomy
The aggregate limit is the maximum the insurer will pay in total during the policy period. Once exhausted, no further coverage exists for that period even if per-occurrence limits remain nominally available.
Commercial general liability policies typically carry both a general aggregate and a separate products-completed operations aggregate.
Alternative Names:
General Aggregate, Annual Aggregate
Why it Matters?
Aggregate exhaustion is the risk that surprises defendants facing multiple claims in a single year, since a series of moderate losses can consume the aggregate and leave later claims uninsured. Monitoring aggregate erosion across a book of claims is a carrier and broker function, but defense counsel should confirm remaining aggregate before relying on stated limits in settlement discussions.
Frequently Confused with
Related terms
Frequently asked questions
What happens when the aggregate is exhausted?
Do all policies have aggregate limits?
