Policy Aggregate

The policy aggregate sets the overall ceiling on what a policy will pay across all occurrences during the policy term, typically one year. Once the aggregate is exhausted through paid claims, the policy provides no further coverage for the remainder of the policy period, even if each individual claim was within the per-occurrence limit.

For COI compliance, the general aggregate is a critical coverage metric. Standard contractual requirements often specify a general aggregate of at least $2 million. Compliance teams should verify this figure on every general liability certificate.

An important compliance concern is aggregate erosion. If a vendor has already had significant claims during the policy period, the remaining aggregate may be insufficient to cover new incidents. While certificates typically show the full policy aggregate, they do not reflect claims already paid. For high-risk vendor relationships, certificate holders may request aggregate erosion endorsements or mid-term coverage confirmations.