A per occurrence limit is the most the policy will pay for any single claim. An aggregate limit is the most it will pay in total across the policy period, regardless of how many claims there are. Once the aggregate is exhausted the policy pays nothing further, even though the per occurrence limit appears untouched.
Updated September 2026.
Why brokers care
Contracts routinely require a limit without specifying which one, and a policy that satisfies the per occurrence requirement may have an aggregate that has already been substantially eroded by earlier claims. The certificate shows the limits as written, not what remains. On a client with active claims activity, the number on the certificate can be materially misleading.
What to check
- Which limit the contract actually requires, and whether it says
- Whether the aggregate applies per project or per policy
- How much of the aggregate has been eroded during the term
- Whether products and completed operations carries its own aggregate
- Whether an umbrella sits above both and on what terms
Common mistake
Matching the per occurrence limit to the contract and ignoring the aggregate. On an account with active claims, the aggregate may be substantially eroded while the certificate still shows the limit as written.
Limits sit near the top of the certificate review checklist.