Per occurrence is the max per single claim; aggregate is the hard cap on all claims combined for the entire policy period.
A per-occurrence limit caps what's paid for any single claim. The aggregate limit is the total ceiling across all claims during the policy period—once exhausted, no further claims are paid regardless of individual limits. A $1M/$2M policy pays up to $1M per claim and $2M total across all claims that year.
Per occurrence is the maximum your insurer will pay for a single claim, while aggregate is the total maximum they'll pay for all claims during your policy period. For example, with a $1M per occurrence / $2M aggregate policy, one large claim can reach $1M, but if you have multiple claims, they cannot exceed $2M combined for the year.
No, your per occurrence limit is the absolute maximum your insurer will pay for any single claim or incident. Even if your claim costs exceed this limit, you are responsible for amounts above it. This is why choosing adequate per occurrence limits based on your potential risk exposure is critical when purchasing coverage.
Once your aggregate limit is exhausted, your policy stops paying claims for the remainder of the policy period, even if individual claims are below your per occurrence limit. You would need to pay out-of-pocket or wait until your policy renews with a fresh aggregate limit to have coverage again.
Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.
Last updated: July 2026.