General aggregate insurance is a special policy coverage that is found on a commercial general liability (CGL) insurance policy. General aggregate insurance covers damages that are paid for bodily injury, property damage, medical expenses and lawsuits that may occur to a business. The amount of general aggregate insurance coverage can vary depending on what is needed for coverage.
- The general aggregate limit on a CGL insurance policy is a total amount that will be paid during any one policy period. This means that coverage will pay for every claim, loss and lawsuit that involves a policyholder, until the aggregate limit for the policy has been reached for the current policy term. However, the general aggregate limit can be reinstated in certain circumstances.
- The general aggregate limit on a general liability insurance policy provides coverage for various types of risks that are not excluded on the policy. One type of risk includes paying for damages that occur when an insured's premises are not maintained properly. Coverage is also provided for damages that are the result of activities that are undertaken by the policyholder's business.
- Once the aggregate limit has been reached for the current policy term, it typically resets after the policy has been renewed. However, some insurance companies may provide an endorsement, which can reinstate the aggregate limit once it has been exhausted. An endorsement, if offered by the insurance company, will typically add additional costs that can affect the premium that is paid for the general liability policy.
- Once the general aggregate limit has been reached for a policy, the benefits will end for the current policy term. This means that any litigation costs that occur or claims that are made after the aggregate limits have been exhausted will need to be paid by the policyholder. The policyholder can avoid this risk by purchasing a higher general aggregate limit amount for the policy.
- The typical aggregate limit for a general liability policy is $1 million. However, many insurance companies may offer a higher general aggregate limit amount. The aggregate limit also comes with a per occurrence limit that is typically $1 million. The per occurrence limit is the most that a general liability insurance policy will pay for any one claim. Keep in mind that when the aggregate limit is increased, the per occurrence limit will generally stay the same.
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