Business insurance insights
Business Liability Limits: Compare Categories and Aggregates
Use a simple worksheet to compare individual limits, aggregate limits and the policy wording behind two business liability proposals.
Record the limits for each CGL category and the aggregates separately. The California Department of Insurance’s commercial guide describes individual limits for general liability, fire legal liability, products/completed operations, advertising/personal liability and medical payments. In that California consumer explanation, one annual aggregate combines the non-products categories, while products/completed operations has a separate aggregate. That distinction identifies the figures to ask about; your specific policy’s wording controls its coverage and limits.
Compare the limit labels before the price
The following worksheet and document-gathering steps are PolicyBenchmark’s preparation suggestions. Start with the declarations and proposed coverage forms. Copy each label into a comparison sheet exactly as written. If two labels differ, ask your agent, broker or insurer to explain the applicable provisions before treating the amounts as equivalent.
After describing the shared annual aggregate, the California guide says that exceeding it exhausts the policy limits and ends further claim payments for the policy period. The guide then identifies a separate aggregate for products and completed operations. Record that separate aggregate on its own row. California Department of Insurance
Use a short worksheet for the proposals you actually receive:
| Item to copy or clarify | Proposal A | Proposal B |
|---|---|---|
| General liability limit | ||
| Fire legal liability limit | ||
| Products/completed-operations limit | ||
| Advertising/personal liability limit | ||
| Medical payments limit | ||
| General aggregate label and amount | ||
| Products/completed-operations aggregate | ||
| Policy start and end dates | ||
| Other limits listed in the proposal | ||
| Form or endorsement that changes a listed limit | ||
| Question requiring a written answer |
Leave a cell blank when the proposal provides no answer, then ask your agent, broker or insurer to point to the relevant provision. Keep the reply with the proposal so that you can review the comparison later.
Read the coverage alongside the limit
A dollar amount is only one part of the comparison. The Texas Department of Insurance’s CGL guide says coverage varies by insurer and directs readers to review their policy and endorsements. It describes CGL protection for bodily injury, property damage, and personal and advertising injury liability claims, with exclusions affecting the coverage.
For each proposal, ask which provision governs the activity you want to insure and whether an endorsement changes it. Put the answer beside the limit rather than comparing prices in isolation. You can also read PolicyBenchmark’s general liability guide.
Ask separately about excess coverage
The Texas regulator describes excess liability as paying covered losses above the CGL dollar limit. It describes umbrella coverage above automobile liability and CGL limits, and coverage for exposures outside the primary CGL policy when the umbrella does not exclude them. Texas Department of Insurance
If a proposal includes an excess or umbrella layer, ask for its own documents and record its limits separately. Ask your agent, broker or insurer to explain how that layer would respond above the specific underlying policy you are considering. PolicyBenchmark’s umbrella insurance guide is a related starting point.
Take a completed comparison to the next conversation
Gather the two proposals, your filled-in worksheet and the outstanding questions. Ask your agent, broker or insurer to resolve differences in labels, categories and policy wording before you choose a proposal. For broader preparation, use the business insurance quiz to organize the coverage questions you want to discuss.
Have a question about your own situation? Send it to PolicyBenchmark.
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This content is for informational purposes only and does not constitute insurance advice. Always consult with a licensed insurance professional before making coverage decisions.