Aggregate Limit
The maximum total amount an insurance policy will pay for all covered losses during the policy period
Detailed Explanation
Once the aggregate limit is exceeded, the insurance provider will cease processing further claims, even if the policy period hasn't ended.
Practical Example
John's construction company has a general liability policy with an aggregate limit of $1,000,000 per year. If multiple claims occur throughout the year that total $1,000,000 in payouts, the policy will not cover any further claims until the next policy period.
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