Aggregate Limit
An Aggregate Limit is the maximum total amount your insurer will pay for all claims combined during your policy period (typically one year), regardless of how many separate incidents occur.
What You Need to Know
If your general liability policy has a $2 million aggregate limit and you have three slip-and-fall claims totaling $1.8 million, you only have $200,000 in coverage left for the rest of the year. Once you hit the aggregate, you're personally responsible for any additional claims.
How aggregate limits work:
- The aggregate resets annually when your policy renews — unused aggregate doesn't carry over
- Every claim, settlement, and legal defense cost reduces your aggregate
- It's separate from your per-occurrence limit — you have both a per-claim cap AND a total annual cap
Most policies follow a $1 million per-occurrence / $2 million aggregate structure. Your aggregate must typically be at least double your per-occurrence limit, so it can absorb two major claims in one year.
Why It Matters for Restaurant Owners
High-traffic restaurants face multiple small claims throughout the year. Your aggregate limit needs to be high enough to cover your realistic exposure based on customer volume, alcohol service, and claims history.
Factors that increase aggregate risk:
- High customer volume — more customers means more slip-and-fall opportunities
- Alcohol service — liquor liability claims can be expensive
- Delivery operations — vehicle accidents add to your aggregate
- Outdoor seating and events — more exposure points throughout the year
If you exhaust your aggregate mid-year, you're personally liable for any additional claims and most carriers won't raise limits mid-policy. An umbrella policy sitting above your general liability adds another $1-5M in aggregate capacity and is essential protection for restaurants with meaningful exposure. Most owners should carry at least $2 million aggregate, with $3-5 million for higher-risk operations.
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