What is an aggregate limit of indemnity?

'Aggregate' limit of indemnity is a term used to describe the type of indemnity limit provided by the professional indemnity policy.

'Aggregate' means that the total amount of financial cover provided is limited to the amount specified in the policy schedule, arising within the specified period of insurance. 

For example, if the aggregate limit of indemnity specified in the policy is £ 500,000, that is the maximum amount the policy will pay during its term. One claim for £ 500,000 would exhaust the policy. Some policies may cover legal defence costs and expenses in addition to the aggregate limit of indemnity. 

An alternative and more generous basis of cover is an Any One Claim limit of indemnity.

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