Aggregate Limit

The aggregate limit is the ceiling on what your insurer will pay out across all claims in a policy year. For a tree service company carrying a standard $1 million per-occurrence / $2 million aggregate GL policy, the carrier will pay up to $1 million for any single claim but no more than $2 million total for all claims combined during the annual term.

This matters more than many tree service owners realize. A busy operation running multiple crews across different job sites faces compounding exposure. One crew drops a limb on a car ($40,000), another damages a fence ($15,000), and a third causes a visitor injury on a commercial property ($300,000). Those claims erode the aggregate. If a catastrophic claim occurs late in the policy year and the aggregate is nearly exhausted, the remaining coverage may be insufficient.

Tree service companies working on large commercial contracts or municipal projects often face aggregate requirements of $2 million, $3 million, or even $5 million. If your base policy aggregate falls short, you have two options: ask your carrier to increase the aggregate (which raises your premium), or purchase an umbrella or excess policy that adds a second layer of aggregate limits above your primary coverage.

Monitor your aggregate throughout the year. Your agent can pull a loss run mid-term to see how much of your aggregate has been consumed. If claims are trending high, you may need to adjust your risk management practices or explore mid-term policy modifications.