Per-Project Aggregate
Also known as: designated construction project aggregate, per-location/per-project aggregate endorsement
A per-project aggregate is an endorsement to a commercial general liability policy that provides a separate aggregate limit for each construction project a contractor is working on. Without it, a standard CGL policy caps total covered losses at one shared aggregate for the entire policy term. That means a single bad job — or claims from work completed months earlier — can exhaust the aggregate and leave no coverage available for the contractor's other active projects. The per-project endorsement isolates each project so its own limit refreshes independently.
For a small-business contractor, this endorsement is often the difference between meeting contract requirements and losing coverage mid-job. Project owners and general contractors frequently demand a per-project aggregate in their insurance specifications precisely because they do not want unrelated claims elsewhere draining the limits protecting their site. If you run multiple jobs at once, or your products-completed operations exposure is high, a shared aggregate is a real risk: one large claim can zero out your coverage for every other client. The endorsement multiplies your effective protection at a modest premium.
A practical nuance: read the endorsement's definition of "project," because a single continuous location, a multi-phase job, or work under one contract may all be treated as one project even if you think of them separately. Also confirm whether completed-operations claims tie back to the originating project's aggregate or fall under the general aggregate. For large jobs, a per-project aggregate is sometimes replaced or supplemented by a wrap-up (OCIP/CCIP) that insures all enrolled contractors on one program. When bidding, match your aggregate structure to the contract's insurance requirements so a certificate does not misrepresent the limits actually dedicated to that owner's project.
Real-world scenario
Cornerstone Framing LLC, a mid-size framing contractor, carries a general liability policy with a $1,000,000 per-occurrence limit and a $2,000,000 general aggregate limit. Their base GL premium runs $18,500 a year with a $5,000 per-claim deductible. In a single spring, Cornerstone is framing three separate jobsites at once — a $3,200,000 apartment build, a strip-mall, and a custom home — and every general contractor's subcontract demands that a fresh $2,000,000 aggregate apply to that specific project.
Without help, one bad site could burn through the shared $2,000,000 aggregate and leave the other two projects effectively uninsured. So Cornerstone's broker adds a per-project aggregate endorsement for an extra $2,400, bringing the total premium to $20,900. Now the $2,000,000 general aggregate resets independently on each designated jobsite.
The math proves its worth. On the apartment build, a subfloor collapse triggers a bodily-injury claim that the carrier settles for $650,000, plus $120,000 in legal defense paid in addition to the limit. Weeks later a scaffolding incident at the same site produces a second claim settled for $400,000. That's $1,050,000 of indemnity charged against the apartment project's own $2,000,000 aggregate, leaving $950,000 still available for that jobsite. Meanwhile, a $275,000 water-damage claim (plus $85,000 defense) hits the strip-mall, drawing solely on the strip-mall's separate $2,000,000 aggregate and leaving the custom home's full $2,000,000 untouched. Had Cornerstone relied on a single shared aggregate, the combined $1,325,000 of indemnity would have consumed most of the $2,000,000, leaving barely $675,000 of limit for all remaining work across every site.
How it affects your premium
The cost of a per-project aggregate endorsement is usually a modest add-on to your base general liability premium, but several factors move the price:
- Number of concurrent projects — the more active jobsites you run at once, the more separate aggregates the carrier must reserve, which raises exposure and cost.
- Contract value and project size — a $3,200,000 build carries far more claim potential than a small remodel, so larger projects push the surcharge up.
- Trade and hazard class — roofers, framers, and excavators are rated higher than low-risk trades because their loss frequency and severity are greater.
- Underlying aggregate limit — resetting a $2,000,000 aggregate per project costs more than resetting a $1,000,000 one, since each project effectively receives the full limit.
- Loss history — a clean record earns a smaller surcharge, while prior claims signal the carrier is more likely to pay out multiple project aggregates.
- Definition of "project" in the endorsement — broadly defined projects (by location vs. by contract) change how many aggregates could be triggered and are priced accordingly.
- Wrap-up participation — if a job is covered by a wrap-up (OCIP/CCIP), the carrier may discount the per-project charge for that enrolled work.
Common misconceptions
Myth: A per-project aggregate gives me a higher total limit of insurance.
Reality: It doesn't raise your per-occurrence limit — it multiplies the existing aggregate limit across separate projects so one bad job can't drain coverage for the others. Each designated project simply gets its own full aggregate.
Myth: My standard GL already applies a fresh aggregate to every job automatically.
Reality: Most unendorsed CGL policies share a single general aggregate across all your operations for the policy year; the separate-project treatment only exists once the endorsement is added. Understanding the general aggregate vs. products aggregate distinction helps clarify what the endorsement does and does not reset.
Myth: The per-project aggregate also resets my products-completed operations aggregate.
Reality: No — it typically applies only to the general aggregate for ongoing operations at the designated project. Your products-completed operations aggregate usually remains a single shared limit unless separately endorsed.
Frequently asked questions
Do general contractors actually require a per-project aggregate?
How does the endorsement define a "project"?
Does a per-project aggregate cost a lot more?
What happens to claims that aren't tied to a specific project?
Is a per-project aggregate the same as a wrap-up policy?
Sources cited
Need per-project aggregate coverage?
Compare quotes from 10+ commercial insurance carriers in 5 minutes. Free, no contact info required.
Get My Quotes →