General Liability Aggregate Limit and Each Occurrence Explained

Example: General Liability $1M Each Occurrence/ $2M Aggregate

General Liability Insurance can be confusing, especially if you're not sure the meaning of the limits, General Aggregate and Each Occurrence (Per Occurrence). Here's the difference and how it impacts your Business Insurance. 

So here's the deal, Each Occurrence is the maximum the insurance company will payout per claim. Using the numbers in this example, if you have a General Liability claim that's $1,500,000, you are going to have to come up with the $500,000 since Each Occurrence is $1,000,000. Some companies see the $2,000,000 amount and they assume the $2,000,000 will cover everything. This can be confusing if you're not familiar with these numbers. Where does the $2,000,000 come into play then? Well, that is the aggregate amount. Meaning, the total amount the insurance company will payout for multiple claims during the policy term. 

If you have questions about General Liability Insurance limits, Umbrella Insurance or any other Business Insurance needs, please feel free to contact me. 

Jason Matison
[email protected]

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