What does the General Aggregate Limit refer to in a CGL policy?

The General Aggregate Limit in a Commercial General Liability (CGL) policy refers to the maximum amount that an insurer will pay for all covered losses within a policy period, regardless of the type of coverage triggered—be it bodily injury, property damage, personal injury, or any other covered liability. This limit is crucial as it caps the total payout for all claims combined, thus protecting the insurer from excessive losses related to multiple claims.

In the context of the available choices, selecting the option that states the maximum payout for all coverage types combined accurately captures the essence of the General Aggregate Limit. It signifies that once policyholders reach this limit, any additional claims will not receive coverage, emphasizing the importance for businesses to understand these limits when securing liability insurance. The other options narrowly focus on specific areas of coverage and do not reflect the comprehensive nature of the aggregate limit, which encompasses all covered claims during the policy period.