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📋 '''General aggregate limit''' is the maximum total amount an [[Definition:Insurance carrier | insurer]] will pay for all covered [[Definition:Insurance claim | claims]] under a single [[Definition:Insurance policy | policy]] during a defined policy period, typically one year. Unlike a [[Definition:Per-occurrence limit | per-occurrence limit]], which caps the payout for any individual event, the general aggregate limit sets a ceiling on the cumulative liability the carrier assumes across every claim that falls within the policy's scope. It is a central feature of [[Definition:Commercial general liability (CGL) insurance | commercial general liability]] policies and plays a critical role in how [[Definition:Underwriting | underwriters]] structure coverage and manage [[Definition:Loss exposure | loss exposure]].

⚙️ When an insured experiences multiple claims during the policy period, each approved claim erodes the general aggregate. Once the cumulative payouts — including [[Definition:Defense costs | defense costs]], where applicable — reach the aggregate ceiling, the insurer's obligation to pay further claims ceases, and the [[Definition:Policyholder | policyholder]] bears the remaining exposure. For example, a contractor with a $2 million general aggregate and a $1 million per-occurrence limit could exhaust coverage after just two maximum-severity incidents. [[Definition:Insurance broker | Brokers]] and [[Definition:Risk manager | risk managers]] monitor aggregate erosion closely, sometimes arranging [[Definition:Excess insurance | excess]] or [[Definition:Umbrella insurance | umbrella]] layers to provide additional capacity once the primary aggregate is depleted. Some policies offer aggregate reinstatement provisions, though these typically come at additional [[Definition:Premium | premium]].

💡 Understanding the general aggregate is essential for both buyers and carriers because it defines the true boundary of protection a policy offers. A low aggregate relative to the insured's [[Definition:Risk profile | risk profile]] can leave significant gaps — a reality that becomes painfully apparent in high-frequency loss scenarios such as [[Definition:Product liability insurance | product liability]] or construction defect claims. On the carrier side, [[Definition:Actuarial science | actuaries]] and underwriters use aggregate limits to model worst-case portfolio exposure and set appropriate [[Definition:Reinsurance | reinsurance]] attachment points. Regulators and [[Definition:Rating agency | rating agencies]] also scrutinize how aggregate limits are managed across a book of business as a measure of an insurer's [[Definition:Capital adequacy | capital adequacy]] and disciplined risk selection.

'''Related concepts'''
{{Div col|colwidth=20em}}
* [[Definition:Per-occurrence limit]]
* [[Definition:Commercial general liability (CGL) insurance]]
* [[Definition:Umbrella insurance]]
* [[Definition:Excess insurance]]
* [[Definition:Policy limit]]
* [[Definition:Self-insured retention (SIR)]]
{{Div col end}}

Definition:General aggregate limit - Revision history

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