# General liability limits explained

> Each occurrence, general aggregate, products-completed operations, and the other commercial general liability limits, and how to read them on a certificate.

A commercial general liability (CGL) policy has several separate limits, not one. The ACORD 25 certificate shows six of them, and a contract that asks for $1 million and $2 million is naming two of those numbers specifically. This page explains each limit, how the aggregate gets used up, and what a general contractor (GC) checks on the certificate.

## The limits on the certificate

On the general liability section of an ACORD 25 you will see:

- **Each occurrence.** The most the policy pays for all damages from one occurrence. Contracts often start at $1 million, but they vary.
- **General aggregate.** The most the policy pays in a policy year for most claims combined. $2 million is common alongside a $1 million occurrence limit.
- **Products-completed operations aggregate.** A separate cap for claims arising from finished work or products. For contractors this matters for years after the job ends. It is often the same as the general aggregate, but not always.
- **Personal and advertising injury.** Covers certain offenses such as libel or wrongful eviction. It is a per-person or organization limit and is often $1 million.
- **Damage to premises rented to you.** Applies to damage to a rented building from fire and similar causes. Amounts vary, and are often lower than the occurrence limit.
- **Medical expense.** A small no-fault limit per person for injuries on the insured's premises or from operations. Amounts vary, and many policies carry a low figure.

## Why "$1M/$2M" is read as separate numbers

When a contract says $1 million per occurrence and $2 million aggregate, those are two separate limits, and the certificate must show at least those two figures in the right boxes. A policy with a $2 million occurrence limit and a $2 million aggregate may exceed the requirement. A policy with a $1 million occurrence limit and a $1 million aggregate does not meet the aggregate. Reviewers check each box, not a total.

Be careful with combined totals. Some contracts allow an umbrella to make up the difference between the policy limit and a higher required limit, and some do not. The contract controls. See [umbrella vs excess liability](https://complysub.agntwrk.com/guides/umbrella-vs-excess-liability).

## How the aggregate erodes

Payments under the policy reduce the remaining aggregate. If a policy has a $2 million general aggregate and the insured has paid $1.5 million on claims from other jobs this year, only $500,000 remains for everyone, including you. Defense costs are usually outside the limits on a standard CGL, but some policies are written so that defense costs reduce the limits, so ask your broker or the vendor's agent if it matters.

Because of this, a certificate showing a $2 million aggregate says what was purchased, not what is left. A certificate does not report how much has been used.

## Per-project and per-location aggregates

To avoid sharing one aggregate across all of a contractor's jobs, policies can carry an endorsement that applies the aggregate separately to each project or location. ISO forms for this are commonly numbered CG 25 03 for designated construction projects and CG 25 04 for designated locations, though carriers also use their own wording. Contracts for larger projects often require a per-project aggregate. The ACORD 25 has a box to show that the general aggregate applies per policy, per project, per location, or other. Check the box and ask for the endorsement if it matters.

## What GCs check on the certificate

1. Each limit meets or exceeds the contract, box by box.
2. The policy is on an occurrence basis, unless the contract accepts claims-made.
3. The policy period covers the project dates.
4. The aggregate applies as the contract requires.
5. Required endorsements are shown. See [additional insured](https://complysub.agntwrk.com/guides/additional-insured-cg-20-10-vs-cg-20-37) and [primary and non-contributory](https://complysub.agntwrk.com/guides/primary-and-non-contributory).
6. The insured name matches the contract.

For other red flags, see [certificate of insurance red flags](https://complysub.agntwrk.com/guides/certificate-of-insurance-red-flags).

## How umbrella limits stack

An umbrella or excess policy adds limits above the underlying policies, typically general liability, auto, and employer's liability. It does not replace them. A $1 million GL occurrence limit plus a $5 million umbrella is often described as $6 million of protection for one occurrence, but only if the umbrella follows the form, and only for the covered claims. Umbrella terms differ from carrier to carrier, so ask for the actual policy wording where the exposure is large.

## Limits are a contract and risk decision

There is no single right number. Limits depend on the trade, the project, the owner's requirements, and state law. Confirm contract wording with an insurance professional or attorney. ComplySub does not give insurance or legal advice.

## Check this automatically

With ComplySub you enter your required limits once, and each uploaded certificate is read and compared against every limit separately. It flags the exact line that falls short, such as a general aggregate below the requirement, along with missing endorsements, a wrong holder, or an expired policy. Vendors upload through a link without an account, and ComplySub reminds the vendor and their agent. Subcontractors with one certificate use it free.

[Try ComplySub free](https://complysub.agntwrk.com/login)

_This guide is general information, not legal or insurance advice. Insurance and licensing rules vary by state, carrier, and contract; confirm what applies to you with your insurance professional, attorney, or licensing board._