Aggregate limit
The maximum amount an insurer will pay for a series of covered losses during a stated period, commonly the policy term. It is separate from the limit that may apply to one claim or occurrence.
An aggregate limit caps what a policy pays across a defined collection of covered losses during the stated period. Iowa’s real-estate E&O regulatory notice defines the term as the maximum insurer liability for a series of losses in a time period such as the policy term.
That differs from a per-claim or per-occurrence limit. A business can have a claim that fits beneath its individual limit while a prior claim has already reduced the aggregate available for the rest of the period. The declarations and endorsements identify the aggregates that apply and whether particular operations have their own aggregate.
For contractual-liability decisions, read both numbers and the language that says what shares the aggregate. An umbrella may provide additional limit above a scheduled underlying policy, but it does not rewrite the underlying policy’s terms. See when an umbrella requirement is normal.
Sources
- Primary source: Iowa Administrative Bulletin ARC 7460C — E&O insurance definitions — Official regulatory notice defining aggregate limit as the maximum insurer liability for a series of losses in a stated period such as the policy term.