The maximum amount of money your insurer will pay for all the claims you file during the policy period, typically one year, is known as your aggregate limit. Aggregate limits are distinct from per-occurrence (or per-claim) limits. These refer to the maximum amount an insurer will pay for a single claim or incident.
What does any one claim in the aggregate mean?
Example of “Any One Claim” This means that the business does not have any outstanding liabilities to meet themselves and are fully indemnified by their insurers. However, depending on the business type, an aggregate policy may be all that you need.15 Mar 2019
What does it mean when insurance says aggregate?
For various types of insurance, an aggregate limit is the maximum amount of money an insurer will pay for all your covered losses during the policy period, typically one year.
What does limit per claim mean?
That refers to the maximum amount of money the insurance will cover for any one instance. For example, you may have a per claim limit of $25,000. In that case, if you were to incur damages of say $30,000 in legal fees, your insurance would pay $25,000, and you'd have to cover the remaining $5,000 yourself.28 Jan 2018
What does per claim and aggregate mean?
The CNA professional liability insurance policy defines the per-claim limit as “the maximum the Insurer will pay for each claim first made against the Insured and reported to the Insurer during the policy year.” And the aggregate limit is defined as “the maximum the Insurer will pay for all claims first made against 25 Feb 2016
How does a general aggregate limit work?
The general aggregate limit places a ceiling on the insurer's obligation to pay for property damage, bodily injury, medical expenses, lawsuits, and so on, which may arise during the tenure of the insurance policy. If your policies are exhausted, you could be covering claims yourself.
How does aggregate insurance work?
An aggregate limit is a maximum amount an insurer will reimburse a policyholder for all covered losses during a set time period, usually one year. Insurance policies typically set caps on both individual claims and the aggregate of claims. Health insurance plans often carry aggregate limits.