As a business owner, you likely have more than one insurance policy to protect your business. One thing you may see on your policy is something called insurance aggregates. But what is an aggregate and how does it affect your policy?

Aggregate Defined

Insurance companies pay out for claims filed against your business. This money helps cover the costs associated with the claim depending on the policy. However, the amount the insurance company pays isn’t unlimited. An aggregate is the most the insurance company is willing to pay for a certain claim. Most aggregates are based on a number of claims filed in a given calendar year and restart on a new year. Some aggregates are based on a per project or location basis.

Policy Affects

The insurance policies your business has all have aggregates listed on the policy. If your business has more claims on a particular policy in a given claim than the aggregate covers, your business could foot the bill for those additional claims. Speak to your agent if you are unsure whether you have enough insurance protection for your business.

Insurance aggregates are part of an insurance company’s risk management policy. Depending on the number of claims your business has in a given year, the aggregate may or may not impact your bottom line. Your agent can go over your specific aggregates and answer any questions.