Aggregate Deductible

An aggregate deductible is a provision in an insurance policy — particularly in health, business, and liability insurance — that sets a maximum total out-of-pocket expense the insured must pay across all covered claims within a policy period (typically one year), after which the insurer bears 100% of further covered losses. Unlike a per-occurrence deductible (which applies separately to each individual claim), the aggregate deductible accumulates across multiple claims until the threshold is met. Once the aggregate deductible is satisfied, all subsequent qualifying claims in that period are fully covered by the insurer. For businesses, corporate policyholders, and individuals managing high-frequency claims — such as those holding group health insurance or commercial general liability policies — understanding the aggregate deductible structure is essential for accurately budgeting insurance costs and assessing the true financial protection provided by a policy.