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What is the difference between a Limit of Liability and the Aggregate Limit of Liability?

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What is the difference between a Limit of Liability and the Aggregate Limit of Liability?

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• The Limit of Liability refers to the maximum an Insurer will pay for any single claim. The Aggregate Limit of Liability refers to the maximum an Insurer will pay during a policy period. For example, if you have a $1M Limit of Liability and a $2M Aggregate Limit. You could have two $1M claims or four $500k claims (in one term). So long as the single claim limit does not exceed $1M and the total of all claims does not exceed $2M, you would have coverage for all claims reported in the policy period. Should a single claim exceed the $1M limit, or if you had several claims in one policy year that in total exceeded the $2M aggregate, you would be liable for the uninsured difference.

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