What is the difference between a Limit of Liability each Claim and the Aggregate Limit of Liability?
• The Limit of Liability each Claim 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 each Claim and a $2M Aggregate Limit, you could have two $1M claims or four $500k claims (in one policy 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 term that in total exceeded the $2M aggregate, you would be liable for the uninsured difference.