A Brief Look At Aggregate Insurance
If you are planning on purchasing professional liability insurance for architects and engineers, it is important that you take a look at what aggregate coverage is and how it affects you when you make claims. The more you know about this the easier it becomes for you to know what amount of money the carrier will be willing to pay for not just single claim, but over all claims made over the entire lifetime of your policy.
Aggregate insurance for architects or engineers can place limits on the total sum of money that the insurer will pay on the claims that the insured makes. In other words the insurer will determine how much money they are willing to pay over a number of different insurance policies.
If you have several architect or engineer insurance policies then the sum total of the value of such policies is not actually doubled but is arrived at according to a combination of factors. This also means that the sum total value can either be reached in just one incident or over a number of incidents spread over a number of years.
Aggregate insurance is meant to place a cap on the exposure of the carrier to losses that the policyholder incurs over the term of the policy. This form of insurance allows the carrier to calculate their premiums more accurately so that they know how much money they will be paying out for one or more claims made by the insured.
In case the total dollar amount of all claims exceeds the aggregate limit, then it is not the carrier that will pay the excess amount but the insured. This is why when purchasing such form of coverage it pays to raise the limits so that you get maximum protection against multiple numbers of claims without at the same time adding significantly to your premium costs.
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Tim EslerFollow
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