What are occurrence and aggregate limits in a policy?

Occurrence Limit: The maximum amount the insurer will pay per incident. Aggregate Limit: The maximum amount the insurer will pay during the policy period.

Occurrence limits refer to the maximum amount the policy will pay for a single claim, while aggregate limits refer to the total amount the policy will pay during the policy period for all claims combined.

A bakery has an occurrence limit of $500,000 per claim and an aggregate limit of $1 million, ensuring protection against multiple incidents during the policy period.

Understand the difference between occurrence and aggregate limits, and choose limits that adequately protect your business from multiple claims.