A single claim is not the only exposure an insurer faces. An aggregate limit is the maximum total amount the insurer will pay for all covered claims during a specified policy period. Once that ceiling is reached, the insurer has no further obligation for additional losses in that period.

Aggregate limits appear frequently in liability, professional, and umbrella policies. They protect the insurer from the cumulative effect of many moderate claims or a cluster of large ones. Policyholders must track remaining aggregate capacity, especially in high-frequency lines.

Some policies restore the aggregate at renewal; others offer reinstatement options for an extra premium. When an aggregate is exhausted mid-term, the insured may need to purchase additional coverage or self-insure the excess. Clear wording of the aggregate and any sub-limits is essential to avoid disputes.

• Maximum total payout for all claims in a period
• Common in liability and professional policies
• Protects insurer from cumulative losses
• May be restorable or subject to reinstatement