What does "general aggregate limit" refer to in liability insurance?

The term "general aggregate limit" in liability insurance specifically refers to the maximum amount the insurer will pay for all claims made during a policy term. This limit encompasses all claims for both individual incidents and multiple claims within the coverage period, providing a cap on the total exposure the insurer has for that policy term.

In practical terms, it means that if multiple claims are filed against the policyholder during the coverage period, the insurer will only pay out up to this specified limit for the total of all claims combined. Once that limit is reached, any additional claims will not be covered unless there are provisions allowing for additional coverage.

This differs significantly from a limit per individual claim, which indicates what the insurer will pay for a single occurrence. The general aggregate limit takes a more holistic view over the entire policy term, establishing a broader cap that reflects the insurer's overall liability exposure.