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Insurance & Bondingaka: aggregate limit

General Aggregate

In Plain English

The most your insurance will pay out in total across all claims in a single year.

Definition

The general aggregate is the maximum total amount an insurance company will pay for all covered claims under a commercial general liability policy during the policy period, typically one year. Once the aggregate limit is exhausted, no further claims will be paid under that policy for the remainder of the term. Contractors managing multiple simultaneous projects must monitor aggregate consumption carefully to avoid gaps in coverage.

Example

A contractor with a $2 million general aggregate has three separate $800K claims in one year; the insurer pays only $2 million total, leaving the final claim partially uninsured.

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