For individuals or businesses, being insured is smart. Unexpected events are going to happen and being covered for any type of loss brings peace of mind. Business insurance policies have a number called the aggregate. This is the total amount of money the policy will pay for all events that occur within its term, generally one year. If you incur losses greater than the aggregate within the term, you will have to pay the added amount. There is a better way to go.
Per Project Aggregate
For many businesses, a better option is per project insurance. With this type of coverage, there is an aggregate that applies to each individual project your business has in the works. Your insurance company will pay the aggregate for each individual project that shows any losses. The individual projects are generally listed separately on the policy. Per project premiums are higher but are well worth the extra cost. If you have a difficult and unlucky year where events occur on more than one project, you could get to your last one and not have sufficient coverage left. With a per project aggregate, each project is fully covered.
Businesses need insurance. For those that develop multiple projects each year, per project insurance is probably the best way to go.