aggregate
Definition
Aggregate refers to the total combined amount of something, usually money, when you add everything together into one sum. In legal and insurance contexts, it sets the maximum total amount that will be paid out over a specific period, no matter how many separate claims or incidents occur.
Example
Your business insurance policy might have a $1 million per-occurrence limit and a $3 million aggregate limit, meaning the insurer will pay up to $1 million for any single incident but will not pay more than $3 million total across all claims in a given year.
Watch Out
If your business faces multiple claims in one year, you could hit your aggregate cap faster than expected and find yourself unprotected for the rest of that period.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.