Aggregate
Definition
The total maximum amount an insurer will pay for all claims during a policy period. Aggregate limits apply across all occurrences, while per-occurrence limits apply to each individual claim.
Example
A liability policy has a $1 million per-occurrence limit and a $2 million aggregate limit. Five separate claims of $500,000 each occur. The first four are paid in full ($2 million total), reaching the aggregate. The fifth claim is not covered, leaving the insured responsible.
In Practice
Aggregate limits are common in liability policies and protect insurers from excessive total losses in a policy period. Once the aggregate is exhausted, no further claims are covered until policy renewal. Policyholders with high claim frequency should consider higher aggregate limits. Some policies have separate aggregates for different coverage parts.