Per claim limits

The maximum amount insurers will cover for each claim.


What is a per claim limit?

A per claim limits is the maximum amount of money your insurance company will pay out for a single claim. It’s also known as a “per occurrence limit.”

The difference between a per claim limit and an aggregate limit

If a per claim limit is the maximum paid out for each claim filed, an aggregate limit is the sum total amount that you could be paid by your insurance policy.

You might  already be familiar with an aggregate limit if you’ve already got business insurance.

For example, if you buy a million-dollar insurance policy, that million dollars is your aggregate limit. It’s the maximum your insurer will pay for claims over the course of your policy period, generally a year.

Per claim limits cap the amount paid out for each claim you file while your policy is in effect.

Example of how per claim limits work

Imagine you’ve got a million dollar general liability insurance policy ($1,000,000 aggregate limit) with a $400,000 per claim limit. You end up filing three individual claims over the course of the year — your policy term.

  • Claim #1: You file a claim for $450,000. Because of the per claim limit, your insurer would only pay $400,000, leaving you owing $50,000, even though there’s still $600,000 available in your liability coverage.
  • Claim #2: The second claim costs $300,000, so your insurance provider would pay all $300,000 since it’s below your per claim limit. You have $300,000 remaining in your aggregate limit.
  • Claim #3: Your final claim costs $375,000. Even though this falls below your per claim limit, because you only have $300,000 left, you would need to pay the remaining $75,000.

Note: This doesn’t represent the total amount you would have to pay. In addition to exceeding your limits, you would still owe your monthly premiums and have to pay a deductible for every claim you file.

Why have a per claim limit?

Basically, both per claim limits (and aggregate limits) exist to keep insurance at reasonable costs. Typically, insurance coverage with higher limits are more expensive, so having a maximum payout limit gives business owners more choice with their coverage.

By offering per claim limits, insurance carriers can offer you insurance tailored to your needs. If you work in a low-risk field or have a limited budget, you can opt for a plan with lower limits and lower premiums. In the even something unexpected happens, you’ve got some help.

Buy say you work in a high-risk field or have a larger budget. You can increase your coverage limits to provide more protection against accidents.

Policy limits help protect insurance providers from large losses, allowing them to keep their premiums affordable and offer more choices to you. As a business owner, you must assess these limits and the cost of your policy and weigh that against your risks.

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With 24/7 access to manage and update your coverage, NEXT lets you handle your insurance when it’s best for you.

You can start a quote, customize your options and access your certificate of insurance online immediately — in about 10 minutes.

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Business insurance is divided into different policies. We offer 7 types so it's easy to design the coverage that fits your business.
General Liability insurance
General Liability
Accidentally damaged customer property? General liability insurance makes those uh-oh moments okay by covering a wide range of incidents and basic risks. Contractors and cleaners can add tools and equipment coverage to protect their gear, as well.
Workers' Compensation Insurance
Workers’ Compensation
If you have employees, workers’ comp is mandatory in almost every state to help cover medical bills and lost wages if a workplace accident occurs. And don’t forget about the boss — add business owner’s coverage to protect yourself as well.
Professional Liability or Error and Omissions Insurance
Professional Liability/E&O
If you’re accused of making an error at work, we’ve got your back. Get professional liability insurance (also known as errors & omissions insurance) and you’ll be protected from certain types of lawsuits and claims.
Commercial Auto Insurance
Commercial Auto
Vehicle-related damage shouldn’t mean you have to pump the brakes on your bottom line. With commercial auto, you’re covered for dents, tows and damage to someone else’s car or truck. Add HNOA coverage for extra protection on rentals and employee vehicles.
Tools & Equipment Insurance
Tools & Equipment
Add a tools and equipment upgrade to your general liability insurance. If your gear ever gets damaged or stolen, we’ll be there to abracadabra them back in a flash.
Commercial Property Insurance
Commercial Property
Commercial property insurance isn’t just for buildings — it can protect almost all the gear, inventory and equipment you need to do business.
Business Owner’s Policy Insurance
Business Owner’s Policy
A business owner’s policy (BOP) combines general liability and commercial property into one handy package. It’s a great option for protecting your business if you have a physical location, equipment or inventory and if you deal with customers or the public.
* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of December 6, 2023. To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.