Per-Occurrence vs Aggregate Limits Explained
Two numbers control how much your liability policy pays: the most for one claim, and the most for the whole policy period. Both can run out.
Last reviewed: May 26, 2026 by the BizLeaseCheck Editorial Team
General information, not insurance or legal advice.
Overview
Commercial general liability policies usually show a per-occurrence limit (the most paid for a single claim) and an aggregate limit (the most paid for all claims in the policy period).
The aggregate is the one businesses overlook: several mid-size claims can exhaust it, leaving later claims in the same period uncovered.
Topics to check
The per-occurrence limit caps any one claim; the aggregate caps the total for the policy term. Once the aggregate is exhausted, the policy stops paying even if the per-occurrence limit would otherwise apply.
Check whether separate aggregates apply to different coverage parts (for example, products-completed operations often has its own aggregate).
Insurance (Cornell LII Wex)On some policies, defense costs erode the limit — every dollar spent defending a claim reduces what is left to pay it. On a liability claim with heavy defense costs, a wasting limit can be exhausted before any settlement is paid.
Confirm whether defense costs are inside or outside the limit; outside-the-limit defense preserves the full limit for the loss itself.
Compare the per-occurrence and aggregate limits to your realistic worst-case exposure, confirm whether the aggregate is shared across coverage parts, and find out whether defense erodes the limit. Consider whether an umbrella or excess policy is needed.
Adequacy of limits is a judgment call that depends on your business and risk; confirm it with a licensed agent or broker.
SBA — Get Business InsuranceKey takeaways
- Per-occurrence caps one claim; aggregate caps the whole policy period.
- Earlier claims can exhaust the aggregate, leaving later claims uncovered.
- Defense-within-limits ("wasting") policies erode the limit with defense costs.
- Check for separate aggregates on different coverage parts.
- Limit adequacy is a judgment call for a licensed agent or broker.
Official resources
Coverage-review notes
Guide confidence marker: Medium confidence.
- Whether limits are adequate, shared, or eroded by defense depends on the policy form and your exposure.
- Confirm limit structure and adequacy with a licensed agent or broker.
- This guide is general information from the BizLeaseCheck Editorial Team. It is not insurance advice or a coverage opinion; confirm coverage with a licensed agent or broker.
Frequently asked questions
What is the difference between per-occurrence and aggregate limits?
The per-occurrence limit is the most the policy pays for a single claim; the aggregate is the most it pays for all claims in the policy period. Once the aggregate is used up, the policy stops paying for the rest of the term.
What does "defense within limits" mean?
It means defense costs reduce your available limit. On a wasting policy, money spent defending a claim is subtracted from what is left to pay the claim, so a long defense can exhaust the limit before settlement.
Is this insurance or legal advice?
No. This is general, educational information to help you read your own policy — it is not insurance advice, a coverage opinion, or legal advice. Coverage depends on the exact policy form, endorsements, declarations, and state law, so confirm what a policy covers (and whether the limits are adequate) with a licensed insurance agent or broker, and read the actual policy.