What applies to commercial general liability coverages if the aggregate limit is not met?

The correct answer is related to how commercial general liability (CGL) insurance policies function when it comes to claims. In a CGL policy, the "per occurrence" limit applies to individual claims made against the insured. This means that for each occurrence or event that leads to a claim, there is a set limit on how much the insurer will pay, regardless of the overall aggregate limit.

When the aggregate limit is not met, policyholders can still make claims up to the per occurrence limit for each separate incident. This structure ensures that even if multiple claims arise within the policy period, the insured can recover up to the per occurrence limit for each claim that does not exceed the aggregate limit.

In the context of the other potential options, the terms "per claim," "per event," and "per year" do not precisely capture how CGL coverage is structured. "Per claim" is not commonly used in liability policies, as claims are generally evaluated based on occurrences or incidents. The term "per event" can be ambiguous and is not the standard terminology used in insurance policies. "Per year" is not accurate because the limits apply to occurrences rather than a time frame. Thus, "per occurrence" correctly indicates the coverage structure in CGL