Per-Project Aggregate vs. Policy Aggregate in General Liability
Understand a contract request for a per-project aggregate and verify whether the policy actually applies an aggregate separately to a project. Practical U.S. small-business guidance.
A standard general-liability aggregate is typically shared across every covered claim during the policy period, regardless of how many separate projects the business is working on at the same time. A per-project aggregate endorsement changes that by resetting the aggregate separately for each job — but the mere presence of a large headline aggregate on a certificate does not prove that endorsement actually exists.
One aggregate, spread across every job in the year
A contractor's general-liability policy typically applies one shared aggregate limit across all covered claims arising anywhere in the business during the policy period — not one fresh aggregate per project. A client asking specifically for a per-project aggregate is trying to prevent claims on other, unrelated jobs from quietly eroding the limit available for their own project.
Ten projects, one shared pool of coverage
A contractor carries a $2 million general aggregate and works ten separate projects in a single year. A covered loss on project three reduces the aggregate available for every other project sharing that same policy period — including the client on project eight who never had any claim at all. The per-project aggregate request exists specifically to prevent that kind of cross-project erosion.
A large number on the COI doesn't answer the question
A certificate showing a $2 million general aggregate says nothing about whether that aggregate is shared or reset per project — the certificate simply reports the number from the declarations page, which does not distinguish the two structures. Only the specific endorsement, if one exists, actually answers the question.
What to confirm before signing
Because per-project aggregate endorsements are not universally available and can affect pricing, this is worth resolving before the contract is signed rather than after.
- Whether the insurer offers a per-project aggregate endorsement for this class of business
- Whether it applies to the specific project the client is asking about
- Whether a separate products-completed-operations aggregate is also expected
- What happens if the insurer cannot provide it — is another structure acceptable to the client?
Primary and regulator sources used
We use government, regulator, and other primary sources for insurance mechanics, state-authority routing, worker-classification, property, claims, and cyber-security guidance. Policy language and state rules still control your specific situation.
Frequently asked questions
Does a $2 million general aggregate on a certificate mean $2 million per project?
Not necessarily. Without a specific per-project aggregate endorsement, that $2 million is typically shared across all covered claims during the policy period, not reset for each individual project.
Can prior claims on unrelated projects reduce what's available for a current client's project?
Yes, under a standard shared aggregate structure. That is exactly the exposure a per-project aggregate endorsement is designed to prevent.
Is a per-project aggregate endorsement available for every business?
Not universally — availability depends on the insurer and class of business. Confirm with the broker before assuming it can be added to satisfy a client requirement.
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