What does General Aggregate Limit mean? Read on to discover the definition & meaning of the term General Aggregate Limit - to help you better understand the language used in insurance policies.
General Aggregate Limit
The maximum limit of insurance payable during any given annual policy period for all losses other than those arising from specified exposures. Under the standard commercial general liability (CGL) policy, the general aggregate limit applies to all covered bodily injury (BI) and property damage (PD) (except for injury or damage arising out of the products-completed operations hazard) and all covered personal and advertising injury. When paid losses in these categories reach the specified aggregate limit, that limit is exhausted and no more losses in any of those categories will be paid under the policy. In other words, once the general aggregate limit is paid out, the only coverage remaining under the policy will be for products-completed operations claims which are paid out of a separate aggregate.
We hope the you have a better understanding of the meaning of General Aggregate Limit.