Aggregate & Per-Occurrence Limits

Common to commercial insurance policies, an Aggregate Limit establishes the total amount of coverage available during the policy period. This is modified by a Per-Occurrence Limit, which is the maximum that the insurer will pay for all claims that result from a single occurrence or incident regardless of the extent of damaged property, injured persons, etc., or how many different claims are filed. A Commercial General Liability policy might have an Aggregate Limit of $1 million dollars and a Per-Occurrence Limit of $250,000. If a business is found liable for damages stemming from a single incident, they will only be covered up to $250,000 even if the total limit of the policy is greater, and would be responsible for any remaining costs out of pocket.