Aggregate limit
The maximum amount the insurer will pay for all claims in a period, across all events combined.
The aggregate limit is the maximum amount the insurer commits to pay for all claims arising in a contract period, usually one year, across all events combined. The per-occurrence limit, by contrast, caps each event on its own. A contract can combine the two: a per-occurrence limit for each event and an aggregate limit for the annual total. A run of claims can then exhaust the cover before the period ends, and the insured has no cover until renewal, whatever claims follow. On high-frequency or accumulation-prone lines, cyber among them, it is the insurer's basic tool for capping its exposure. Where the contract allows cover to be restored after exhaustion, that is a reinstatement clause, and its pricing terms need a close read.
Worked example: a policy carries a limit of 1 million euros per occurrence and an aggregate limit of 2 million per year; after two full-limit claims, the cover is exhausted and a third claim within the year is no longer covered.
aggregate limit, annual aggregate, policy aggregate
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