A contractor's general liability policy has aggregate limits of $1,000,000 and per-occurrence limits of $500,000. Two separate incidents occur: one resulting in $300,000 damages, another in $400,000. How much will insurance pay total?
Correct Answer
A) $700,000
First incident pays $300,000 (under per-occurrence limit). Second pays $400,000 (under per-occurrence limit). Total $700,000 is under the $1,000,000 aggregate limit.
Why This Is the Correct Answer
First incident pays $300,000 (under per-occurrence limit). Second pays $400,000 (under per-occurrence limit). Total $700,000 is under the $1,000,000 aggregate limit.
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