Why this shows up
A contract may require both a per-claim limit and an aggregate limit, and those are not always the same number.
What this changes for you
This affects how you read limits. A policy might show one amount for each claim and another amount for the total policy year, so copying only one number can miss the requirement.
What to check first
- Does the contract list per claim, aggregate, or both?
- Does the certificate show the required aggregate amount?
- Could defense costs reduce the remaining limit?
Example contract wording
Professional liability limits shall be not less than $1,000,000 per claim and $2,000,000 aggregate.
What to do next
- Record per-claim and aggregate limits separately.
- Compare both numbers to the quote and certificate.
- Ask whether defense costs reduce the available limit.
Questions to ask
- Does this quote meet both the per-claim and aggregate requirements?
- Can the aggregate limit be increased if needed?
- Are defense costs inside or outside the limit?
Common mistake
Seeing $1M on a certificate and assuming every contract limit requirement has been addressed.