Glossary
Aggregate limit
The maximum a policy will pay for all claims combined during the policy period. A $1M/$2M policy pays up to $1M per…
What is aggregate limit?
The maximum a policy will pay for all claims combined during the policy period. A $1M/$2M policy pays up to $1M per claim and $2M total per year.
Why it matters
The aggregate is the ceiling for your whole policy year. A busy year with two or three claims can exhaust a low aggregate quickly, leaving nothing for the next claim. That is why $1M/$2M is the standard structure — the second number gives your year room to breathe.