Aggregate Limit

The aggregate limit is the maximum amount the Insurer will pay for all of the liabilities or the series of losses in a given time period. For example, if a doctor has purchased a medical professional liability insurance police the liability insurance coverage may be expressed as $1M/$3M. The first number represents the amount which will be paid for one occurrence, while the second amount is what would be allowed in the aggregate.

For instance, if the doctor is sued the insurance company will pay one million dollars to settle any one claim of negligence. The total amount paid for any claims within a specified period, however, is three million dollars. This means the doctor could have three one million dollar claims settled within their policy period. Three million is a common aggregate limit because this is the amount of professional liability insurance that most hospitals require for privileges. If, however, a doctor wants more insurance coverage they generally can purchase it from an insurance company.