Coverage limits
Each Occurrence vs. General Aggregate: COI Limits Explained
Each Occurrence and General Aggregate are two different commercial general liability limits. The Each Occurrence limit is the maximum applicable limit for a single covered occurrence, subject to the policy terms. The General Aggregate is a separate maximum that may apply across multiple covered losses during the applicable policy period and aggregate scope. A larger aggregate does not increase the Each Occurrence limit.
For example, if a COI shows $1,000,000 Each Occurrence and $2,000,000 General Aggregate, a single occurrence is not automatically covered up to $2 million. The two figures answer different questions and should be compared separately with the client’s insurance requirements.
Quick comparison
| Limit | What it answers | Example |
|---|---|---|
| Each Occurrence | What limit applies to one occurrence? | $1,000,000 |
| General Aggregate | What overall limit may apply across multiple covered losses within the applicable aggregate period and scope? | $2,000,000 |
Practical rule: compare Each Occurrence with an each-occurrence requirement and General Aggregate with an aggregate requirement. Do not add the two figures together, substitute one for the other, or assume the highest number shown on the certificate is the limit available for every claim.
Compare your required and displayed COI limits with the free COI Coverage Limit Comparator →
How Each Occurrence and General Aggregate work together
The distinction becomes easier to understand when several occurrences happen during the same policy period. Consider a simplified example in which the applicable commercial general liability policy has a $1 million Each Occurrence limit and a $2 million General Aggregate.
| Occurrence | Simplified covered amount applied to aggregate | Aggregate remaining |
|---|---|---|
| Occurrence 1 | $700,000 | $1,300,000 |
| Occurrence 2 | $600,000 | $700,000 |
| Occurrence 3 | $700,000 | $0 |
In this simplified illustration, none of the three occurrences exceeds the $1 million Each Occurrence limit, but together they use the $2 million General Aggregate. A later loss that would otherwise fall within the same aggregate could therefore face a different available-limit situation.
This table is an illustration of the limit concepts, not a claim-payment calculation. Actual coverage and how an aggregate is reduced depend on the policy wording, exclusions, endorsements, the nature of the losses, payments already made, and how the applicable aggregate is defined.
What the COI tells you — and what it does not
A certificate of insurance can display the policy’s stated Each Occurrence and General Aggregate limits, but the COI does not create or change the insurance coverage. The underlying policy and applicable endorsements control.
This distinction matters when reviewing limits. A certificate showing $1 million Each Occurrence and $2 million General Aggregate does not by itself establish:
- that a particular loss would be covered;
- how much of an aggregate remains after prior losses;
- whether the aggregate applies per policy, per project, per location, or on another basis;
- whether an exclusion or endorsement changes how coverage responds; or
- whether an umbrella or excess policy can be used to satisfy a client’s requirement.
For document review, treat the COI as evidence summarizing selected policy information. If the scope or remaining availability of a limit matters, route that question to the licensed insurance professional responsible for the policy.
Other limits that should stay separate
| Coverage area | Common field | Do not substitute |
|---|---|---|
| General liability | Each occurrence | General aggregate |
| General liability | Products/completed-operations aggregate | General aggregate without confirmation |
| Commercial auto | Combined single limit | A general-liability limit |
| Umbrella/excess | Each occurrence and aggregate | Underlying limits without policy review |
| Employer’s liability | Each accident | Disease policy limit or disease per employee |
| Professional liability | Each claim/occurrence and aggregate | Commercial general liability |
What about products and completed operations?
The products/completed-operations aggregate is often displayed separately from the general aggregate. Contracts may request a specific value and may ask for additional-insured evidence addressing completed operations. Keep the numeric limit comparison separate from the endorsement question: matching numbers do not establish the scope of additional-insured protection.
Can umbrella or excess insurance fill a difference?
Sometimes a contract permits a combination of primary and umbrella or excess limits. That is not a reason to add every displayed number automatically. Ask three questions:
- Does the written requirement expressly allow limits to be provided through umbrella or excess insurance?
- Does the applicable umbrella or excess policy sit over the required underlying coverage?
- What certificate and endorsement evidence does the reviewer require?
The agent should answer policy-structure questions. The client or its risk reviewer should clarify an ambiguous contract requirement.
Why an aggregate may need special attention
An aggregate can apply across operations, locations, projects, or a defined category depending on policy wording and endorsements. Some public contracts explicitly require the aggregate to apply separately to a project or location. Do not assume a project-specific aggregate exists because a contract requests one or because the general aggregate value is high enough. Send the exact clause to the agent.
A five-step comparison
- Transcribe the written requirement. Record the label and dollar amount exactly.
- Find the corresponding certificate field. Do not compare across unrelated rows.
- Compare the two values. Enter the required and displayed amounts in the COI Coverage Limit Comparator. It keeps Each Occurrence and General Aggregate in separate rows and identifies numeric matches, shortfalls, and missing values.
- Keep policy questions separate. Additional-insured, primary, waiver, and aggregate wording are not solved by arithmetic.
- Send unresolved items together. Use the Agent Request Builder to prepare a clear follow-up.
Frequently asked questions
If my general aggregate is $2 million, can one claim use the full $2 million?
Do not assume so. If the policy displays a $1 million Each Occurrence limit and a $2 million General Aggregate, the aggregate figure does not automatically increase the applicable limit for one occurrence to $2 million. The policy terms determine how the limits apply to a particular loss.
Is the aggregate always twice the occurrence limit?
No universal ratio should be assumed. Compare the actual contract and certificate fields. Public requirements often use different combinations based on the work and risk.
Does a higher aggregate compensate for a lower occurrence limit?
Not in a direct field-by-field comparison. If the occurrence amount is below the stated requirement, flag that line for the agent and reviewer.
Does the certificate show the remaining aggregate?
A standard certificate value generally reports a policy limit, not a live balance after claims. Ask the appropriate insurance professional if remaining aggregate information matters.
Are all umbrella policies the same?
No. Attachment points, underlying coverage, terms, exclusions, and follow-form features vary. A certificate comparison cannot determine how an umbrella policy will respond.
Sources and limits
- King County: Contract Insurance Requirements
- County of Santa Clara: Contractor Insurance Requirements
- Texas Department of Insurance: Certificates of Insurance FAQ
Examples explain document comparison only. They do not calculate claim payments, available aggregate, or contract compliance.