In a commercial General Liability policy, the limit that represents total payout for the policy year is called the

In a commercial General Liability policy, the limit that represents total payout for the policy year is called the

• A. Per occurrence
• B. Aggregate
• C. The sublimit
• D. The deductible

Answer: (B)

In a General Liability policy, there are separate limits for different ways claims can arise. The total amount the insurer will pay for all covered claims within the policy year is called the aggregate. It sets the yearly ceiling on payouts, and you can have multiple claims across the year up to that overall limit (with any specific operations or products/completed operations potentially having their own aggregates). This is different from the limit that applies to a single incident, which is the per occurrence limit. Other related terms: the deductible is the amount the insured must pay before the insurer contributes, and a sublimit is a smaller cap within the overall limit for a particular kind of exposure or claim. Once the aggregate is exhausted, further covered losses are not paid unless the policy includes reinstatement or similar provisions.

In a General Liability policy, there are separate limits for different ways claims can arise. The total amount the insurer will pay for all covered claims within the policy year is called the aggregate. It sets the yearly ceiling on payouts, and you can have multiple claims across the year up to that overall limit (with any specific operations or products/completed operations potentially having their own aggregates). This is different from the limit that applies to a single incident, which is the per occurrence limit. Other related terms: the deductible is the amount the insured must pay before the insurer contributes, and a sublimit is a smaller cap within the overall limit for a particular kind of exposure or claim. Once the aggregate is exhausted, further covered losses are not paid unless the policy includes reinstatement or similar provisions.