Leigh Insurance Agency of St Augustine Blog
When problems arise, liability insurance protects businesses and professionals. The coverage is subject to conditions and limits. The insurer can pay for all claims during the policy period. An aggregate limit of liability comes into play at this point. This guide explains aggregate limits and their utility in tailoring insurance coverage to a business's risk exposure and budget.
Why do aggregate limits serve a purpose?
Aggregate limits are essential for determining whether you can make a profit and protecting yourself and your employees if something goes wrong. Here are the reasons why:
What does it mean for a policy to reach its aggregate limit?
When a policy reaches its aggregate limit, the insurance company may pay out all amounts due. This means that the insurance company may pay all claims filed before reaching the limit of liability. If a claim exceeds the limit of liability, the insurance company may only pay out up to that amount. The excess amount is not covered by insurance and must be paid out-of-pocket or with personal funds.
Protecting your company from unforeseen legal costs requires liability insurance. It not only aids in determining whether you can make money, but it may protect you and your staff in an accident. Because they don't want legal troubles to interfere with their jobs, many people now have personal liability insurance. Your ability to fund a legal defense depends on knowing your aggregate limit.
At Leigh Insurance Agency, we put our clients first by offering them policies that they can afford. Insurance is a necessity nowadays, and we're here to help you. Learn more about our products and services by calling our agency at (904) 826-0799. You can also request a free quote by CLICKING HERE. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!