INSURANCE DATA WIDGET IDEAS
NAME INSURED: XYZ COMPANY
AGGREGATE LIMIT: $2,000,000
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LIMIT REMAINING: $1,000,000
EXPIRES IN:
INSURANCE TERM: 

Aggregate limit
DEFINITION 
Total amount the insurance company will pay to settle claims for the duration of the policy period. 
One of the biggest limitations of today’s insurance certificate is that it may not reflect actual aggregate limits available from the time the certificate is issued to the expiration of the policy term. 

For example, a company’s risk management department may require all vendors to have a $2,000,000 general liability aggregate limit. Say a new vendor’s general liability policy expires on 1/1/2017 and the policy was issued with a $2,000,000 aggregate. The new vendor could provide a certificate of insurance on 8/1/2016 showing the required coverage limits to meet compliance requirements. 

All is good right? 

Wrong. 

Prior to 8/1/2016 the vendor could have been liable for a $1,000,000 claim or a series of claims that add up to $1,000,000. While the certificate issued on 8/1/2016 shows their general liability aggregate limit set at $2,000,000, the reality is that the vendor only has $1,000,000 remaining for their aggregate limit. 

This example illustrates one of the biggest limitations of the modern day insurance certificate and the utility of a real-time aggregate limit calculator. Furthermore, such a hypothetical illustrates the importance of follow form excess/umbrella liability coverage that could “pick up the slack” brought about by eroded aggregate limits and caps on occurrence limits. 

Until insurance data is made accessible in real-time...entities that request certificates will never really know what’s going on “behind the scenes” of what the modern day insurance certificate presents.