Understanding Each Claim vs. Aggregate Limits
Lawyers Professional Liability insurance policies are typically issued with two limits detailed on the Declarations Page – “Each Claim” and “Aggregate”.
The “Each Claim” amount represents the maximum an insurance company will pay for any one covered claim during a specific policy period. In the event the total value of a single covered claim exceeds this amount, an insured would be responsible for the amount above the “Each Claim” limit on such claim.
The “Aggregate” amount represents the maximum an insurance company will pay for all covered claims during a specific policy period. In the event the total value of all covered claims reaches this amount, an insured would be responsible for losses above the “Aggregate” limit during the applicable policy period.
Lawyers and law firms should consider different factors when selecting limits of liability, including but not limited to:
- Client Needs – do your clients require specific limits of liability?
- Worst Case Scenario – what is the value or potential exposure of your work?
- Availability – what limits is your insurance company willing to issue?
As with most topics related to Lawyers Professional Liability insurance, coverage is subject to the terms and conditions of the relevant policy.
While most insurance providers will not recommend specific limits of liability, they will likely confirm available limits upon request.
At Aon Attorneys Advantage, we can help tailor coverage for your firm. Get a free quote in minutes using our online quote platform.
This information is provided for general informational purposes only and is not intended to provide individualized advice. All descriptions, summaries, or highlights of coverage are for general informational purposes only and do not amend, alter, or modify the actual terms or conditions of any insurance policy. Coverage is governed only by the terms and conditions of the relevant policy.