Why it matters for your company
Liability limits are usually quoted as a pair. The common contract ask of $1M per occurrence and $2M aggregate means a single incident is capped at $1M and the year is capped at $2M. General liability often carries a separate aggregate for products and completed operations.
Customers sometimes ask for a per-project or per-location aggregate so another customer's claim cannot drain the limit their contract relies on. For a fleet on several sites that request is worth anticipating, because it is added by endorsement and priced by the insurer.
Related terms
- SublimitA smaller cap inside a policy's main limit that applies to one kind of loss. A $3M cyber policy with a $250,000 sublimit for social engineering pays no more than $250,000 for that claim.
- Umbrella and excess liabilityBoth add limits above your primary liability policies. Excess follows the terms of one underlying policy, while an umbrella can sit over several and sometimes responds to claims the underlying forms leave out.
- Products and completed operationsThe part of general liability that covers injury or damage caused by a product after it leaves your hands, or by work after you have finished it. It usually carries its own aggregate limit.
- Retention and deductibleThe amount of a claim you pay yourself. With a deductible the insurer handles the claim and bills you back; with a self-insured retention you pay defense and loss up to the amount before the insurer steps in.