Some industries such as construction have inherent risks. In addition to liability coverage, you need multilevel insurance policies to cover all scenarios, rather like safety nets. One level of extra insurance is aggregate coverage.
Types of Aggregate Coverage
You can choose from multiple types of aggregate insurance with varying levels of coverage and cost.
• Per incident— The most an insurer will pay out on any one accident or instance of damage to property.
• Per location—Coverage for offices or locations you own. This is not connected to work sites.
• Per policy— This coverage is an absolute limit. It covers all of your projects. When you reach the maximum payout, there is no further coverage.
• Per project— This option applies a specific payout limit to each of your projects.
When it comes to primary vs. excess coverage, sometimes your choices are dictated by the site owner or manager. As with all insurance policies, the more coverage you choose, the higher the cost.
Per Project Coverage
Generally, per project insurance offers the most comprehensive protection. You will not have to worry about an incident on one project using up all of your aggregate coverage. It is more expensive, however, so you must consider your projects, the risks, and your budget to make the best choice.
Those in industries with risks, such as construction, need to purchase their insurance carefully. Per project aggregate insurance covers all of your projects. The right insurance can help you breathe easy and focus on building rather than worrying.