What Is general aggregate coverage

What Is a General Aggregate for Insurance? A general aggregate for insurance is the maximum amount of money an insurer will pay out for claims during the policy period.

Is aggregate the same as umbrella?

The umbrella insurance policy becomes active as soon as the liability limit on other insurance policies is exhausted. A general aggregate is the maximum limit of coverage that applies to the commercial general liability insurance policy.

What does 2000000 aggregate mean?

In the case of our example, the roofing business may have a $2,000,000 aggregate limit with a $1,000,000 per occurrence limit. This means that the insurance company will only pay up to $1,000,000 for the damage for that incident.

What is coverage aggregate limit?

Distinct from a per-claim limit, which states the amount an insurer will pay for each individual claim made during the policy period, the aggregate limit is the maximum amount an insurer will pay for all such claims made against the insured during the policy period, no matter how many separate claims might be made.

What is the difference between occurrence and aggregate?

An occurrence limit is the maximum amount your insurer will reimburse you for one covered incident or claim. The aggregate limit is the maximum amount your insurer pays for all covered claims over the term of your policy.