What it means
A general liability policy normally has one general aggregate that applies to all claims during the policy period. ISO endorsement CG 25 03, Designated Construction Project(s) General Aggregate Limit, applies a separate aggregate to each designated project.
This protects owners and general contractors who worry that a contractor’s limits will already be used up by claims from other jobs. It is one of the most common requirements in construction contracts.
The separate project aggregate generally does not apply to products and completed operations claims, which remain under the policy’s products and completed operations aggregate. Insurers may charge additional premium for the endorsement.
An example
Bayline Paving works on six municipal resurfacing jobs in one policy year. Its policy includes CG 25 03, so a large injury claim on one street project does not reduce the 2,000,000 aggregate available on each of the other five projects.
Names in this example are fictional.
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Get a free contract checkPer project aggregate (CG 25 03), answered
Why do construction contracts require a per project aggregate?
Because a contractor working several jobs could exhaust a single general aggregate before a claim on the owner’s project arrives. A per project aggregate reserves a full aggregate for each designated project. Owners and general contractors see it as a simple way to make sure limits are actually available for their job.
Does a per project aggregate increase the each occurrence limit?
No. The endorsement changes how the aggregate applies, not the each occurrence limit. A single claim is still capped by the each occurrence limit shown in the declarations. If a contract needs higher protection for a single claim, that usually comes from higher primary limits or an umbrella policy above them.
General information only. It is not legal or insurance advice. Only issued policy documents and endorsements describe actual coverage.