What does an aggregate liability policy limit mean?

An aggregate liability policy limit refers to the total amount the insurer is willing to cover for all claims made during a specified policy period. This means that if multiple claims are filed within that time frame, the total payouts will not exceed the aggregate limit set forth in the policy. This limit is particularly crucial for businesses or organizations that may face numerous claims, as it helps manage the insurer's exposure to risk over that period.

The other options presented relate to different aspects of insurance policies. While the maximum amount paid per individual claim concerns the per-claim limit, the minimum deductible pertains to the amount that must be paid out-of-pocket before insurance benefits kick in. The amount paid after all claims are settled speaks to final payouts but does not define the scope of coverage during the policy's lifespan. Thus, understanding the concept of an aggregate limit is essential for comprehending the overall financial protection an insurance policy provides within a given time frame.