What Is General Aggregate?
Made Simple.
Understand how the General Aggregate limit works, what happens when it’s exhausted, and why it’s important when providing a Certificate of Insurance.
What is General Aggregate?
The General Aggregate is the maximum amount your insurance company will pay for all covered claims under your Commercial General Liability (CGL) policy during the policy period (typically one year).
It applies to covered claims under:
• Coverage A: Bodily Injury & Property Damage Liability
• Coverage B: Personal & Advertising Injury Liability
Once the General Aggregate limit has been reached, the insurer generally will not pay additional covered claims that are subject to that aggregate until the policy renews.
Think of it as your annual insurance claims budget for these coverages.
How Does the General Aggregate Work?
Every covered claim that falls under the General Aggregate reduces the amount of coverage you have remaining during the policy period.
EXAMPLE
Suppose your policy has:
• Each Occurrence Limit: $1,000,000
• General Aggregate Limit: $2,000,000
During the policy year, the following claims are paid:
Claim | Amount Paid |
Slip-and-fall at customer location | $400,000 |
Customer property damage | $600,000 |
Defamation lawsuit | $300,000 |
Another slip-and-fall | $700,000 |
Total paid: $2,000,000
At this point:
• Your General Aggregate has been exhausted.
• If another covered claim occurs before the policy renews, the insurer may have no remaining obligation to pay that claim under the exhausted General Aggregate (subject to any other applicable policy limits or endorsements).
Why Does It Matter?
• Many companies require contractors and vendors to carry a minimum General Aggregate limit before they can begin work.
• A higher General Aggregate means your policy can cover more total claims dollars during the policy period before reaching its maximum payout.
• If your General Aggregate limit is lower than the amount required by a customer, your Certificate of Insurance (COI) may not meet their insurance requirements.
What's the Difference Between Each Occurrence and General Aggregate?
These two limits are often confused.
• Maximum paid for one claim or accident
• Resets for each separate covered occurrence (up to policy terms)
• Helps protect your business from large, individual liability claims.
• Commonly required by customers and contracts.
• Example: $1,000,000 per covered occurrence.
Compare
• Maximum paid for all claims combined during the policy period
• Total amount available before the policy limit is exhausted
• Decreases as covered claims are paid.
• Once the aggregate limit is reached, additional covered claims may not be covered.
• At least be equivalent to the Each Occurrence limit.
• Example: $2,000,000 total for the policy period.
Quick Tip
Each Occurrence = one covered claim.
General Aggregate = all covered claims during the policy period.
Does the General Aggregate Include Products-Completed Operations?
Usually, no.
Most standard Commercial General Liability (CGL) policies have a separate Products-Completed Operations Aggregate that applies to claims arising from your completed work or products.
For example:
• General Aggregate: $2,000,000
• Products-Completed Operations Aggregate: $2,000,000
In most cases:
• A premises liability claim (such as a customer slipping in your office) reduces the General Aggregate.
• A completed operations claim (such as damage caused by work you’ve already finished) reduces the Products-Completed Operations Aggregate.
Because these are separate limits, one does not typically reduce the other.
Common Misconceptions
"The General Aggregate is the most my policy pays for one claim."
Not quite. The Each Occurrence limit determines the maximum amount your policy will pay for a single accident or occurrence.
"If I have one $1 million claim, my policy is used up."
Not necessarily. If your policy has Each Occurrence: $1,000,000 & General Aggregate: $2,000,000 a single $1 million covered claim would generally leave $1 million remaining in your General Aggregate for other covered claims during the same policy period.
"The General Aggregate covers every type of liability claim."
Not always. Some claims, such as those involving completed work or products, are often subject to a separate Products-Completed Operations Aggregate, depending on your policy.
Frequently Asked Questions
The General Aggregate typically resets at the beginning of each new policy year.
You can find your General Aggregate in the Limits section on the declarations page of your policy or on your Certificate of Insurance (COI).
It depends on your insurance carrier. Some carriers may allow you to increase your General Aggregate. If a higher limit is not available on your current policy, an Umbrella or Excess Liability policy may be an option to provide additional coverage.