What is an general aggregate limit

The general aggregate limit applies to the total amount insurance companies will pay for covered losses during the policy period. If you reach the limit before the end of your policy period and there's another claim, you'll have to cover the costs out of pocket.

What does it mean if an insurance policy has an aggregate limit of $1 million?

Your insurance policy's aggregate limit spells out the maximum amount of money the insurer will pay for all covered losses during your policy period. After you reach your aggregate limit, the insurance company will not cover any additional claims made in that period, which is typically one year.

What does aggregate mean in insurance terms?

Aggregate — (1) A limit in an insurance policy stipulating the most it will pay for all covered losses sustained during a specified period of time, usually a year. Aggregate limits are commonly included in liability policies.

What does aggregate mean in PI insurance?

'Aggregate' limit of indemnity is a term used to describe the type of indemnity limit provided by the professional indemnity policy. 'Aggregate' means that the total amount of financial cover provided is limited to the amount specified in the policy schedule, arising within the specified period of insurance.

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.