Know Your Commercial Insurance Policy Limit

Know Your Commercial Insurance Policy Limit

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Commercial insurance policy limit means the maximum amount of dollars your insurance company will pay for every element arising out of a claim. A CGL policy (Commercial General Liability) catalogues 6 different limits which are interrelated although they may be listed separately on the policy’s declaration page. This means that when you are paid for one limit due to damages, the other one is also affected. In this article, Let’s look at how they work and the way they interact.

General aggregate limit

This is the maximum amount which you can be paid by your insurance company during your policy period for all the damages such as property damages, bodily injuries, advertising and personal injuries. In addition, damages paid due to medical payments are also included in the general aggregate limit.

Product Completed Operation Aggregate Limit

Completed operation aggregate limit is the maximum amount which your insurer pays for damages do to property damage or even bodily injury which is included in the products completed operations hazard. Specifically, these hazards are limited to property damage and bodily injury which are caused by the products of the insured person which are not in the hand of the insured for work which has already been completed This would have  happened away from the premises of the insured.

Personal & advertising injury limit

This is the maximum amount which your insurer will pay when he is legally obligate to pay for damages as a result of personal as well as advertising injury wrongdoings. It applies separately for each organization and person who has sustained the injury or damages due to a covered wrongdoing. However, the insurer is required to pay up to the maximum aggregate limit regardless of the number of wrongdoings or organizations or persons claim made during the policy time.

Each occurrence limit

It means the maximum amount which your insurer will pay for all damages as a result of body injury, medical payments and property damage. Remember that there is an aggregate limit which arises from the products completed operations hazard and even a separate for other property damage and bodily injury. The different is that each occurrence limit pays even for medical expenses.

Damage to buildings rented to you limit

This is an exception to specific exclusions found in the property damage and bodily injury coverage. The first exception gives coverage of property damage to a house and the contents which is rented to the insured for seven consecutive days if the insured is legally required to pay for these damages as do to any misfortune except fire. The 2nd exception covers for damage to the building only if the insured is legally required to pay for the damage as a result of a fire.

Medical expenses limit

This is a separate insurance agreement which requires the insurer to pay a reasonable amount for medical expenses due to bodily injury as a result of an accident without looking at the fault. These payments are subject to medical expenses limit and apply separately for every person. However, they reduce the general aggregate limit and each occurrence limit due to the same the same occurrence.

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