In a Business Owner's Policy (BOP), the General Aggregate Limit is:

In a Business Owner's Policy (BOP), the General Aggregate Limit is designed to cap the total amount the insurer will pay for all claims that arise over the course of a policy period, usually one year. This limit protects the insurance company from excessive losses resulting from multiple claims.

The General Aggregate Limit is typically set at two times the per occurrence limit in a BOP. The per occurrence limit is the maximum amount the insurance will pay for any single event or claim. By establishing the General Aggregate Limit at twice this amount, the BOP allows for a reasonable balance between the financial protection for the insured and the insurer’s risk exposure. This setup encourages business owners to have adequate coverage for multiple incidents within the same coverage period without excessive underwriting risk for the insurer.

Understanding this structure is crucial for adjusters and policyholders alike, as it helps them comprehend the potential limitations of their coverage and the conditions under which they can receive compensation for multiple claims.