An aggregate limit is the most an insurer will pay for all covered losses during a set period, usually the policy year. IRMI describes it as a provision "limiting the maximum liability of an insurer for a series of losses in a given time period."
Why It Matters for Snow Contractors
A snow contractor clearing dozens of sites can face more than one claim in a winter. Every payment counts against the aggregate. Once it is used up, the policy may not pay further claims in that period, even though each claim was within the per occurrence limit.
Contracts sometimes set an aggregate minimum as well as a per occurrence one. One Ontario township's winter maintenance request for proposals, for example, asked for $5,000,000 per occurrence and $10,000,000 aggregate. Some policies also have a separate aggregate for completed operations.
Example
Your policy has a $2 million per occurrence limit and a $4 million aggregate. Over one winter, three separate slip and fall claims settle. The combined payments reduce what is left in the aggregate for the rest of the policy year, which is one reason contractors with many sites talk to a broker about their aggregate and about umbrella liability.
Related Terms and Guides
General information only, not insurance or legal advice. Policy wordings differ; a licensed broker can explain how your own policy and contracts treat this.
Further reading: Insurance Bureau of Canada: Insurance glossary
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Frequently Asked Questions
Does the aggregate reset every year?
Aggregates generally apply to the policy period, commonly one year. A broker can confirm how yours works.
Do defence costs count toward the aggregate?
It depends on the policy wording. Ask your broker.