Policy Structure
Aggregate Limit
The maximum total amount an insurance policy will pay for all covered claims during a single policy period. Once the aggregate limit is exhausted through claim payments and, in policies with defense costs inside limits, defense spending, no further coverage is available until the next policy period begins. Common aggregate limits for law firms range from $1 million to $10 million.
Related terms
Defense Costs Inside LimitsA policy structure where defense costs, including attorney fees, expert witness fees, and court cost...DeductibleThe amount the insured must pay toward a covered claim before the insurance policy begins to pay. In...Per-Claim LimitThe maximum amount an insurance policy will pay for any single claim, including defense costs if the...