What is a general aggregate limit vs. a per-project aggregate limit?
A general aggregate limit is the total your policy will pay for all claims in a policy year, while a per-project aggregate gives each project its own separate limit. Per-project aggregates are vital for Colorado and Utah contractors handling multiple jobs.
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Complete Guide to Aggregate Limits in General Liability Insurance
Why This Question Matters for Colorado and Utah Residents
Many Colorado and Utah construction firms work on multiple projects each year, from residential builds in Fort Collins to commercial renovations in Salt Lake City. Understanding how aggregate limits work directly impacts your business’s financial safety and ability to win contracts in our region.
- Construction Contract Compliance: Many CO counties (like Larimer) require per-project aggregates for public work; Utah commercial contracts increasingly mandate them too.
- Avoiding Unintended Gaps: High regional claim rates due to weather (hail, snow) and defect litigation can exhaust a standard general aggregate faster than you expect.
- Protecting Business Continuity: With the average completed-operations claim in Colorado costing $78,000, running out of aggregate can put your business at serious risk.
What Most People Get Wrong
Many business owners assume their general aggregate resets for each project—this isn’t true unless a per-project aggregate endorsement is in place. Some underinsure to lower premiums but don’t realize that a single large claim can severely reduce the total remaining for the rest of the policy year or future jobs.
Another common misconception: that insurance will automatically satisfy contract-specific limits. In reality, missing this detail can leave you in breach and prevent payment or project approval.
The Complete Picture
General Aggregate Limit: This is the total your insurer will pay for all claims (except certain ones like products/completed operations) in a single policy year, no matter how many jobs you perform. If the aggregate limit is $2 million and you face multiple claims, payouts for all those claims combined cannot exceed this number.
Per-Project Aggregate Limit: With this endorsement, each project gets its own separate aggregate limit—effectively resetting your coverage for every job (as defined and scheduled in your policy). For busy Colorado and Utah contractors, this can be the difference between full protection and exhausting coverage halfway through the year. Many local government and commercial contracts (especially in Northern CO and Salt Lake County) require per-project aggregates to ensure no gaps for their projects, even if another claim wipes out your overall limit.
Key Colorado Fact: In Larimer County, the minimum required is often $1M per occurrence / $2M general aggregate—and a per-project aggregate of $2M for public work. Failing to supply this can disqualify you from municipal contracts and expose you to uncovered losses.
Making the Right Decision for Colorado and Utah Residents
Question 1: Does your business operate on multiple projects at once?
For construction firms, remodelers, and even some service providers, this is common. If so, you should:
- Review each contract for aggregate requirements (many specify per-project in CO/UT)
- Calculate your total potential exposure—not just per occurrence but across all jobs in a busy season
Question 2: Are you bidding public or large commercial contracts?
Contracts in places like Fort Collins, Denver, and Salt Lake often require per-project aggregates. Even if not required, providing this coverage may give you a competitive edge.
Question 3: Are you planning for the future growth of your business?
If you anticipate expansion—more crews, simultaneous builds, or larger clients—having per-project aggregates protects your business from running out of coverage prematurely. Remember, Colorado and Utah’s rapid growth brings both opportunity and risk, so align your insurance strategy with your business plan.
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Real World Examples
“Aspen Builders: Staying Protected Across Park City Projects”
Background: Emily runs Aspen Builders, a general contracting firm based in Park City, Utah, regularly juggling three or more large-scale remodels in the metro area each year.
Coverage: General liability with a $2M per occurrence/$2M general aggregate and per-project aggregate endorsement
Monthly Premium: $3,160/month ($37,920/year)
The Incident: In June, a faulty railing installation led to a visitor falling and suing for $870,000 in medical and legal expenses at a Main Street commercial renovation. That same summer, an unrelated plumbing leak at a second job cost $120,000 to remediate.
Total Claim Cost: $990,000 (Railing injury: $870,000; Leak: $120,000)
Emily’s Cost: $1,000 (policy deductible) for each claim—her insurer covered both claims in full because each was tied to its own per-project aggregate.
"If my coverage limit had been shared between projects, one accident could have forced me to stop work on everything else. Having per-project limits kept my company open and my clients safe."
“Denver Home Pros: Avoiding Aggregate Exhaustion on Cherry Creek Jobs”
Background: Mike, owner of Denver Home Pros, won contracts for two simultaneous home builds in the Cherry Creek neighborhood.
Coverage: General liability with $1M/$2M limits without a per-project endorsement
Monthly Premium: $2,965/month ($35,580/year)
The Incident: Early in the year, a subcontractor caused a fire at Project A, resulting in a $1.3M claim payout. When a separate claim for $450,000 arose on Project B months later, the aggregate limit had already been depleted.
Total Claim Cost: $1,750,000 ($1,300,000 + $450,000; only $2M aggregate shared)
Mike’s Cost: $250,000 out of pocket for Project B—he had already hit his aggregate limit on Project A, leaving the second contract partially uninsured.
"I never thought one big claim could impact another client’s project. Skipping the per-project endorsement cost us dearly."
“Fort Collins Renovations: Meeting County Bid Requirements”
Background: Sonja owns Fort Collins Renovations, regularly bidding on public school remodels across Larimer County.
Coverage: General liability with $1M/$2M general aggregate, with per-project aggregate (required for county work)
Monthly Premium: $3,283/month ($39,396/year)
The Incident: Sonja’s crew caused $600,000 in property damage at a middle school project. The policy covered the full amount. Later that year, a separate $400,000 claim arose from a slip-and-fall at a different elementary school project.
Total Claim Cost: $1,000,000 across two projects, both fully covered under per-project aggregates.
Sonja’s Cost: $1,000 deductible per claim—no denials or out-of-pocket losses, and she maintained county vendor eligibility as required.
"Not only did the per-project coverage handle every claim, but meeting Larimer County’s requirements kept my business in good standing for future contracts."
Avoid These Common Mistakes
Mistake #1: Assuming One Aggregate Limit Automatically Applies to Every Project
What People Do: Many Colorado and Utah contractors think their general aggregate protects each job equally, regardless of how many are active.
Why It Seems Logical: It’s easy to assume that if you have a $2M aggregate, all your projects will each be protected up to that limit.
The Real Cost: If several claims happen in the same year, the aggregate can be maxed out by just one project—leaving your other jobs completely uncovered. In Colorado, we’ve seen contractors face $100,000+ in uninsured claims for jobs started late in the year after an earlier loss exhausted their coverage.
Smart Alternative: Always consider a per-project aggregate if you handle multiple contracts. FoCoIns can help structure coverage to ensure every job stays fully protected.
Mistake #2: Ignoring Contract-Specific Aggregate Requirements
What People Do: Business owners in CO and UT sometimes use the same standard policy for every contract, even when a client or county requires per-project aggregates.
Why It Seems Logical: Reviewing each contract line by line can feel time-consuming, and some assume insurers will automatically align to contract specs.
The Real Cost: Missing a per-project aggregate requirement can jeopardize payment, block you from winning government bids, or even put you in breach of contract. For Larimer County work, skipping this often means being disqualified from $250,000+ public projects.
Smart Alternative: Work with a local insurance expert—like FoCoIns—who reviews every contract for hidden insurance clauses and ensures you’re compliant before work begins.
Mistake #3: Underinsuring to Save on Premiums
What People Do: Some businesses, especially start-ups or sole proprietors, choose lower limits or skip the per-project endorsement to keep costs low.
Why It Seems Logical: With tight profit margins, saving $150–$300/month sounds appealing if claims seem unlikely.
The Real Cost: The average Colorado construction claim can exceed $78,000, and without the right aggregate structure, one accident may leave you exposed on all other jobs for the rest of the policy year. 74% of businesses facing $100,000+ liability claims without coverage go out of business within 2 years.
Smart Alternative: Invest in the endorsement that fits your real risk exposure. FoCoIns can conduct a no-obligation risk assessment to determine the most cost-effective way to stay truly protected across all projects.
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