What does Aggregate mean? Read on to discover the definition & meaning of the term Aggregate - to help you better understand the language used in insurance policies.
(1) A limit in an insurance policy stipulating the most it will pay for all covered losses sustained during a specified period of time, usually a year. Aggregate limits are commonly included in liability policies. While not often used in property insurance, aggregates are sometimes included with respect to certain catastrophic exposures for example, earthquake and flood. (2) The dollar amount of reinsurance coverage during one specified period, usually 12 months, for all reinsurance losses sustained under a treaty during such period.
We hope the you have a better understanding of the meaning of Aggregate.