What does an aggregate or aggregate limit of liability mean in general liability insurance?
(1) A limit in an insurance policy stipulating the most it will pay for all covered losses sustained during a specified period, usually a year. Aggregate limits are commonly included in liability policies. While not often used in property insurance, aggregates are sometimes included with respect to certain catastrophic exposures, e.g., earthquake and flood. (2) The dollar amount of reinsurance coverage during one specified period, usually 12 months, for all reinsurance losses sustained under a treaty during such period.
An insurance contract provision limiting the maximum liability of an insurer for a series of losses in a given time, e.g., a year or for the entire period of the contract. Sometimes called “annual aggregate limit.”
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