Also known, as the “annual aggregate limit” this is a provision in liability insurance contracts that limits the maximum amount of liability an insurance company will pay in a given year.For example, suppose an insured has a liability policy that pays up to $100,000 per occurrence. Without an aggregate limit of liability, the insurance company is responsible for an unlimited number of occurrences. In order to limit the exposure, the policy may state that the company will pay up to $100,000 per occurrence up to a maximum of five occurrences a year. This limits the insurance company’s maximum exposure to $500,000.