Aggregate Limit Of Liability
Categories: Insurance, Tax, Regulations
You go to the casino with $100 in your pocket. You say, "I'm going to play until I lose this $100, then I'm going home." Assuming you don't talk yourself into going to the ATM when you lose the money in the first 15 minutes, that $100 represents your aggregate limit of liability for that trip to the casino.
In usual real-world terms, the term usually applies to insurance companies. It represents the most an insurance company is required to pay under a specific insurance policy during a specific period of time. The amount is detailed in the policy contract, laying out the cap on the insurance company's liability.
