General Concepts
Policy Aggregate Limit
The aggregate limit caps your insurer's total payout across all losses in the policy term, regardless of how many separate incidents occur.
Last reviewed: May 2026 · Editorial methodology
Definition
While a per-occurrence limit caps what the insurer pays for any single incident, the aggregate limit caps total payments across the entire policy period. For example, a general liability policy might carry a $1 million per-occurrence limit and a $2 million aggregate; if two separate $1 million claims arise in the same year, the aggregate is exhausted and no further liability claims are covered until renewal. Aggregate limits are especially important for businesses with frequent, smaller claims — a restaurant chain dealing with multiple slip-and-fall suits in one year could burn through its aggregate quickly. Policyholders with high claim frequency should consider higher aggregates or umbrella policies to backstop the primary layer. Health insurance plans also use aggregate limits in the form of out-of-pocket maximums.
Where this term matters
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Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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