California Consumer Privacy Act Notice
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In the aggregate refers to the overall or total amount that an insurance policy will cover for multiple claims during a specific policy period. It means that the limit of liability applies to all demands made for damages arising from a single event.
When a protection is established, the insurer sets a specific aggregate limit, which represents the maximum amount they will pay for all combined claims. This includes expenses related to the claims, such as legal fees and settlements. Once the total amount of claims reaches or exceeds the aggregate deductible, the company will not provide coverage for any additional expenses.
In addition, it is important to consider the per-occurrence limit of liability, which sets the maximum amount that the insurer will pay for damages arising from a specific event or incident. This limit applies to each individual occurrence and may be different from the aggregate limit.
At PSIC, when an insurance policy is arranged on an aggregate basis, this means that the limit of indemnity is the total amount that the insurer will pay out over the policy period (usually one year) for multiple claims. The total appears on the declaration page.
All expenses are paid within that limit, and once the limit of indemnity has been reached, your insurance company will not indemnify any future demands for the remainder of the period.
This approach provides policyholders with a clear understanding of the maximum coverage available for multiple claims during the policy term. It allows businesses to assess their risk exposure and make informed decisions about their insurance needs.
By knowing the aggregate limit of indemnity, businesses can plan and budget accordingly, ensuring that they have adequate coverage throughout the policy period. It also incentivizes insurers to manage their risks effectively and take necessary precautions to minimize the likelihood of multiple claims that could exhaust the aggregate limit.
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Copyright © 2023 McGraw Insurance Services, L.P., Delaware L.P., 5515 E. La Palma Ave. Ste. 150, Anaheim, CA 92807, License 0K06900 / National Producer No. 17486061 The insurance policy, not the contents of this website, forms the contract between the insured and the insurance company. The policy may contain limits, exclusions and limitations that are not detailed on this website. Coverage may differ by state.