Aggregate Limit
What is the Aggregate Limit?
The Aggregate Limit is the maximum total amount your insurance policy will pay for all covered claims during your policy period (typically one year). Once you reach this limit, you have no coverage remaining until the policy renews, regardless of additional losses.
Why it Matters for Manufacturers
If you face multiple claims in a single year—such as several product liability lawsuits or multiple property damage incidents—you could exhaust your aggregate limit and be left exposed.
For manufacturers with high-volume production or significant liability exposure, a $2 million aggregate might seem substantial but could be depleted by just two or three claims.
Carefully assess your risk profile and claim history to select an aggregate limit that provides adequate protection throughout the entire policy year.
Is Your Aggregate Limit Adequate?
Answer these questions to assess your coverage risk
1. How many products or units do you manufacture annually?
2. How many insurance claims have you filed in the past 3 years?
3. Do your products pose potential safety or liability risks?
4. What is your current aggregate limit?
5. How many distribution channels or markets do you serve?