General Liability Occurrence and Aggregate Limits
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An each-occurrence limit caps one covered liability event; an aggregate caps covered payments across the policy period. A “1 million / 2 million” shorthand is incomplete without the coverage form, products aggregate, defense treatment, deductibles, exclusions and umbrella terms.
Read the each-occurrence limit
This is the maximum stated for one covered occurrence, subject to sublimits and other provisions. Multiple claimants can share it. The definition of occurrence and related acts can affect whether events are grouped.
Track aggregate erosion across the year
The general aggregate can be reduced by multiple covered claims. California guidance notes that once applicable aggregate limits are exhausted, no further payment is available under those limits for the remainder of the policy period.
Find the products-completed operations aggregate
Claims arising from products or completed work can have a separate aggregate. Businesses that manufacture, install, repair, distribute or perform work after handover should map this exposure explicitly.
Ask whether defense costs erode limits
Legal defense can be inside or outside limits depending on the form. Duty-to-defend wording, consent, panel counsel, supplementary payments and self-insured retention can materially change the business’s cash exposure.
Do not size a limit before checking exclusions
Professional services, auto, pollution, employment, cyber, liquor, product recall, care-custody-control and damage to work can be restricted or excluded. A larger limit does not repair an excluded cause.
Verify the umbrella follows the underlying risk
An umbrella can sit above scheduled underlying policies but can have its own exclusions, attachment points, retained limits and notice conditions. Confirm vertical exhaustion and whether the underlying limits satisfy the schedule.
Use loss scenarios without predicting lawsuits
List plausible bodily injury, property damage, product and completed-work events; estimate only for risk-management discussion; and obtain qualified legal and insurance advice. Do not treat an online number as a likely settlement. Use the deductibles, limits and sublimits guide to document the retained layer and aggregate structure.
Frequently asked questions
What does 1M/2M general liability mean?
It often refers to a 1 million each-occurrence limit and 2 million general aggregate, but confirm the declarations, products aggregate, sublimits and form.
Does CalculatorGeek calculate how much liability insurance I need?
No. Liability severity and legal exposure require business-specific, contractual and jurisdictional review.
Does CalculatorGeek sell business insurance or collect quote leads?
No. The calculator and guides do not rank carriers, display live offers, collect applications, sell leads, predict eligibility, or recommend a policy.
Do the USD, GBP, CAD and AUD modes apply local insurance law?
No. They change currency formatting and context only. They do not insert compulsory cover, taxes, policy forms, premiums or legal duties.
Sources and review status
- California Department of Insurance — Commercial Insurance Guide
- NAIC — Small Business Insurance
- U.S. Small Business Administration — Get Business Insurance
- UK Business.gov — Insuring Your Business
- Business.gov.au — Types of Business Insurance
- Business.gov.au — Manage Business Insurance
- BDC — What Business Insurance Do You Need?
Sources and model boundaries were checked on 2026-10-08. CalculatorGeek Editorial Team reviewed and approved the full finance and insurance package on 2026-10-08. The cited organizations supplied source material; they did not review or endorse this CalculatorGeek package. Product terms, policy forms, laws, regulatory guidance and rates can change; current written documents and applicable authorities control.
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