Understanding Per Policy Aggregate vs. Per Project Aggregate Limits
When reviewing General Liability coverage in a Certificate of Insurance (COI), it's important to understand how aggregate limits apply—especially when vendors are working across multiple properties or jobs. The distinction between Per Policy Aggregate and Per Project Aggregate affects how much total coverage is available in the event of multiple claims.
What Is an Aggregate Limit?
An aggregate limit is the maximum amount an insurer will pay out during the policy period (usually 12 months) for all covered claims combined under a particular coverage type—such as General Liability.
There are two common ways these limits are applied:
1. Per Policy Aggregate
This is the standard or default limit in most insurance policies.
Key Features:
It is a fixed total cap for the entire policy, regardless of how many projects the insured is working on.
Once the aggregate limit is reached, the insurer will not pay any additional claims under that policy for the remainder of the policy period.
💡 Example: A vendor has a General Liability policy with a $2,000,000 Per Policy Aggregate. If they file multiple claims totaling $2M in a year (even across different jobs), they will be out of coverage for additional claims until the policy renews.
2. Per Project Aggregate
This endorsement extends the policy to apply the General Aggregate limit separately to each project or job site.
Key Features:
Each qualifying project has its own aggregate limit.
Offers broader protection for clients, particularly when vendors perform work across multiple locations or developments.
Not all policies include this endorsement automatically; it must be requested and added by the insured.
🛠️ Example: A vendor with a $2,000,000 Per Project Aggregate limit performs work at three different sites. A claim at Site A for $1.5M does not reduce the available coverage at Sites B or C, which also retain $2M in available aggregate limits.
Important Clarification
While Per Project Aggregate provides broader coverage, it typically applies only to active construction sites or projects. It does not apply to ongoing operations at properties the vendor owns or rents, or where the work is not site-specific.
_______________________________________________________________________________________________________________
Need More Help?
For further assistance, contact VIVE's customer service:
Available 9:00 am - 6:00 pm Monday - Friday EST
- Online chat under the "Help" icon
- Email: support@getvived.com