The maximum total amount an insurer will pay for all covered claims during a policy period, typically one year. Once the aggregate limit is reached, the insurer will not pay any additional claims regardless of individual per-occurrence limits remaining.
Related Terms
Coverage Limit
The maximum amount an insurance company will pay for a covered loss under a policy. Limits can apply per occurrence, per person, or as an aggregate over the policy period. Choosing the right coverage limit is one of the most important decisions when buying insurance.
Policy Period
The span of time during which an insurance policy provides coverage, typically six months or one year. Claims are only covered for events that occur within the policy period. The start and end dates appear on your declarations page.
Per-Occurrence Limit
The maximum amount an insurer will pay for a single claim or event. Each separate incident is subject to this limit regardless of how many claims have already been filed during the policy period. Per-occurrence limits are distinct from aggregate limits.