What are the two limits of liability for a commercial general liability policy?

What are the two limits of liability for a commercial general liability policy?

• A. Per claim and Aggregate
• B. Aggregate and Occurrence
• C. Per project and Per claim
• D. Single limit and Per occurrence

Answer: (B)

In a commercial general liability policy, the coverage is defined by two limits: the amount available for each individual incident and the total amount available for all incidents in the policy period. The per occurrence limit is the maximum the insurer will pay for any single event that causes bodily injury or property damage. The aggregate limit is the maximum the insurer will pay for all covered claims combined during the policy period. So, even if multiple claims arise, the total paid cannot exceed the aggregate, while each separate incident cannot exceed the per occurrence limit. For example, with a per occurrence of a certain amount and an aggregate cap, a single serious event could use up to the per occurrence amount, but once the aggregate is exhausted, additional claims are not covered for that period. This is why the two limits are described as aggregate and occurrence. Some choices refer to different concepts (per claim, per project, or a single limit) that don’t reflect the standard two-limit structure of a CGL policy.

In a commercial general liability policy, the coverage is defined by two limits: the amount available for each individual incident and the total amount available for all incidents in the policy period. The per occurrence limit is the maximum the insurer will pay for any single event that causes bodily injury or property damage. The aggregate limit is the maximum the insurer will pay for all covered claims combined during the policy period. So, even if multiple claims arise, the total paid cannot exceed the aggregate, while each separate incident cannot exceed the per occurrence limit. For example, with a per occurrence of a certain amount and an aggregate cap, a single serious event could use up to the per occurrence amount, but once the aggregate is exhausted, additional claims are not covered for that period. This is why the two limits are described as aggregate and occurrence. Some choices refer to different concepts (per claim, per project, or a single limit) that don’t reflect the standard two-limit structure of a CGL policy.