Your General Liability policy provides two limits of protection – a “per occurrence limit” and an “aggregate limit.” If you have a $1,000,000 per occurrence limit and a $2,000,000 aggregate limit, your policy will pay up to $1,000,000 for each covered lawsuit, but never more than $2,000,000 for the policy period – that’s the aggregate.
You can increase your limits of protection by using one of two endorsements:
- Aggregate Limits of Liability Per Location – If your business involves multiple stores, factories or other locations, this is the endorsement for you.
- Aggregate Limits of Liability Per Project – If you’re a contractor and have multiple jobsites active at the same time, this is the endorsement for you.
Without one of these endorsements, your aggregate limit applies to all of your locations or jobsites combined. But with one of these endorsements in place, your aggregate limit applies separately to each of your locations or jobsites. That means a $2,000,000 aggregate limit now becomes $2,000,000 per location or jobsite. If you have three locations or jobsites, this endorsement is providing you up to $6,000,000 of protection instead of only $2,000,000. Plus, when a loss is paid at location #1, that loss reduces the remaining available protection for that location only. The aggregate limits for all your other locations or jobsites are unaffected.
What do these endorsements cost? While not all insurance companies will offer these endorsements, those that do offer them for a nominal charge. Admittedly, the odds of you ever needing this kind of multiplied protection are pretty slim. But then again, there are frivolous lawsuits in this country every day, and plenty of people who would take you for everything you have if given the chance. It may be worth looking into these endorsements to make your nights more restful.
If you have questions or concerns about your liability protection or your insurance coverage in general, we’re here to help!