Aggregate Product Liability Limit

You run a manufacturing firm. You want to protect yourself against the possibility of being sued if one of your products turns out junky and causes a problem for one of your soon-to-be-former customers. It's time to buy some product liability insurance.

With this policy, the insurance company will cover the costs related to a product liability suit, if such a legal action should come up.

However, you need to read the fine print. That policy might have an aggregate product liability limit.

This clause puts a cap on the amount the insurance company will cover over a certain period of time. The limit covers the total amount of money the insurance company will pay out rather than the number of claims filed. Like...they'll cover the building from the fire, but not the contiguous redwood forest and the homes (that used to be) on it.