Construction & General Contractors
What is a per-project aggregate, and when does a GC need it?
A per-project aggregate request generally seeks a separate limit for covered claims associated with a defined project rather than one aggregate shared across the contractor's entire operations. On an ISO commercial general liability policy that result comes from the Designated Construction Project(s) General Aggregate Limit endorsement, CG 25 03, which gives each scheduled project its own general aggregate equal to the declarations amount for ongoing operations, reduces only that project's aggregate as claims are paid, and leaves completed-operations claims subject to the policy's separate products-completed operations aggregate. Whether the issued policy provides that result depends on its aggregate wording, the endorsement and its schedule, limits, exclusions, completed-operations treatment, and any umbrella or excess terms. A GC should compare the contract's required limit and period with the declarations and endorsement, then document any alternative before signing; a certificate alone does not prove a per-project aggregate. General insurance education, not legal, accounting, actuarial, professional-standards or policy-specific advice. Coverage depends on the policy form, endorsements, limits, deductibles, exclusions, jurisdiction and facts. Submission does not bind coverage or guarantee a quotation or carrier approval.
Key takeaways
- An annual general aggregate and a project-specific aggregate answer different limit-allocation questions; on ISO forms the project version is endorsement CG 25 03 (designated construction projects) and the location version is CG 25 04.
- The project must be defined accurately in the endorsement schedule by location, contract, named insured, or another policy schedule; an unscheduled project shares the policy's general aggregate.
- CG 25 03 does not change the products-completed operations aggregate, which stays one annual limit unless a separate designated-project completed-operations aggregate endorsement is attached.
- Whether an umbrella aggregate applies per project depends on the umbrella's own aggregate wording and endorsements, not on the primary endorsement.
- Limit availability is not a guarantee that every allegation is covered or that a project will never erode a limit.
Start with the limit the contract actually requests
A contract may request a general aggregate, per-project aggregate, per-location aggregate, products-completed-operations aggregate, or a project-specific policy. Those phrases should not be treated as interchangeable. Write down the amount, whether it applies per occurrence or in the aggregate, the project definition, the policy period, completed-operations period, and whether the owner, lender, or other party must receive status.
Ask why the owner made the request. A multi-project GC may have several active jobs, while an owner may want a limit that is not eroded by unrelated operations. The commercial objective does not determine whether a policy responds; the endorsement and actual wording do.
On an ISO commercial general liability policy the standard mechanism is the Designated Construction Project(s) General Aggregate Limit endorsement, CG 25 03; its per-location counterpart is CG 25 04. Under CG 25 03 a separate Designated Construction Project General Aggregate Limit, equal to the general aggregate shown in the declarations, applies to each construction project listed in the schedule (or, when the schedule is blank, to each project away from premises the named insured owns or rents), and payments for damages under Coverage A (other than damages within the products-completed operations hazard) and medical expenses under Coverage C arising from ongoing operations at that project reduce only that project's aggregate. Carriers may issue their own versions with different schedules or definitions, so the attached form controls.
Sources for this section: International Risk Management Institute (IRMI): Designated construction project general aggregate limit endorsement (glossary entry); Iowa State University Institute for Transportation (Iowa SUDAS): Standard insurance endorsement forms, including the Designated Construction Project(s) General Aggregate Limit endorsement (reproduction of the ISO form).
Verify the project-specific mechanism
Obtain the declarations, aggregate endorsement, project schedule, policy definitions, exclusions, and any designated-project wording. Confirm the legal entity and location, project description, start and completion assumptions, and whether work performed by subcontractors is included. Check if the aggregate applies only to ongoing operations, also to completed operations, or to another defined hazard.
Compare the primary policy with the umbrella or excess layer. A higher excess limit does not necessarily cure a mismatch in the primary aggregate, attachment, follow-form, or project schedule. Umbrella aggregate wording varies: some forms apply the umbrella aggregate 'in the same manner' as the underlying aggregates, which can carry a per-project allocation upward, while others state one annual general aggregate for all underlying insurance or add an endorsement that caps the umbrella aggregate at a single annual amount regardless of the number of projects. Record the response in the contract review file and do not infer a project limit from a certificate's total limits.
Sources for this section: Iowa State University Institute for Transportation (Iowa SUDAS): Standard insurance endorsement forms, including the Designated Construction Project(s) General Aggregate Limit endorsement (reproduction of the ISO form); International Risk Management Institute (IRMI): Commercial Umbrella Policy—A Few Things To Consider (Craig Stanovich, June 2024).
Track erosion and the completed-operations period
A project aggregate can be reduced by covered payments, defense treatment, or other policy mechanics. Establish who receives loss and limit information, how open claims are escalated, and what happens when a project changes scope, location, owner, or entity. This is a monitoring process, not a promise that a stated limit remains untouched.
At closeout, preserve the project schedule, endorsements, policies, certificates, claim notices, substantial-completion evidence, and completed-operations requirements. CG 25 03 is explicit that damages within the products-completed operations hazard are not subject to the project aggregate: they continue to reduce the policy's single products-completed operations aggregate. A contract that asks for a per-project aggregate 'including completed operations' is therefore asking for a second endorsement (ISO publishes a separate designated-project products-completed operations aggregate form) or a project-specific policy, and the request needs policy-specific analysis.
Sources for this section: Iowa State University Institute for Transportation (Iowa SUDAS): Standard insurance endorsement forms, including the Designated Construction Project(s) General Aggregate Limit endorsement (reproduction of the ISO form); International Risk Management Institute (IRMI): Designated construction project general aggregate limit endorsement (glossary entry).
Resolve an unavailable requirement before signature
If the annual policy cannot provide the requested aggregate, ask the broker and carrier about a scheduled project endorsement, a project-specific policy, revised limits, an owner-controlled program, or another written solution. Do not state on a certificate that an unavailable endorsement exists.
The owner, lender, GC, and counsel should document whether an alternative satisfies the contract. The right answer depends on project size, delivery method, loss history, carrier terms, subcontractor structure, jurisdiction, and the wording actually issued.
Aggregate wording to distinguish
| Term | Starting question | Evidence |
|---|---|---|
| General aggregate | Is the limit shared across covered operations or projects? | Declarations and the Limits of Insurance section of the CGL form |
| Per-project aggregate | Is a separate limit assigned to this defined project? | CG 25 03 (or carrier equivalent) and its project schedule |
| Per-location aggregate | Is the limit tied to a location rather than a contract? | CG 25 04 (or carrier equivalent) and its location schedule |
| Products-completed operations aggregate | How are completed-work claims allocated? | Declarations; CG 25 03 leaves this aggregate unchanged unless a separate completed-operations project aggregate endorsement is attached |
| Umbrella aggregate | Does excess capacity follow the same project allocation? | Umbrella aggregate wording and any endorsement restricting it to one annual amount |
Sources for this section: International Risk Management Institute (IRMI): Designated construction project general aggregate limit endorsement (glossary entry); Iowa State University Institute for Transportation (Iowa SUDAS): Standard insurance endorsement forms, including the Designated Construction Project(s) General Aggregate Limit endorsement (reproduction of the ISO form); International Risk Management Institute (IRMI): Commercial Umbrella Policy—A Few Things To Consider (Craig Stanovich, June 2024).
Per-project aggregate review
- Copy the contract's exact aggregate language, limit, project definition, and period.
- Confirm project entity, address, owner, contract, scope, and completion assumptions.
- Obtain declarations, aggregate endorsements, schedules, exclusions, and completed-operations terms.
- Compare primary and excess attachment, project allocation, and follow-form language.
- Set a process for claim, limit, project-change, and closeout records.
- Resolve exceptions in writing before signing or issuing a certificate.
Hypothetical: Hypothetical — two projects and one aggregate
A GC's certificate shows a $2 million general aggregate while its contract requests $2 million per project for a hospital renovation. The GC also has a new warehouse project on the same policy. Without a project endorsement or other evidence, the parties cannot assume each project has a separate limit; the policy schedule and written contract resolution must be reviewed.
Additional questions
Is a $2 million general aggregate the same as $2 million per project?
No. A general aggregate may be shared according to the policy, while a per-project request addresses allocation to a defined project. Check the endorsement and schedule.
Does a project aggregate cover completed operations?
Not under the standard form. CG 25 03 applies the separate project aggregate to ongoing operations and states that damages within the products-completed operations hazard remain subject to the policy's products-completed operations aggregate. A separate designated-project completed-operations aggregate endorsement exists; review which, if either, is attached, together with completion dates, exclusions, and the contract period.
Can an umbrella fix a missing project aggregate?
Do not assume that it can. Whether the umbrella aggregate applies per project depends on the umbrella's own aggregate wording and endorsements; some forms follow the underlying allocation, others state one annual aggregate or add an endorsement capping the umbrella at a single annual amount. Compare the umbrella's attachment, aggregate, follow-form, project, and other-insurance terms with the primary requirement.
Sources
- Iowa State University Institute for Transportation (Iowa SUDAS): Standard insurance endorsement forms, including the Designated Construction Project(s) General Aggregate Limit endorsement (reproduction of the ISO form) — accessed 2026-10-18; supports the mechanics of the ISO designated-construction-project aggregate endorsement: a separate general aggregate equal to the declarations general aggregate applies to each scheduled project for ongoing operations, payments reduce only that project's aggregate, and damages within the products-completed operations hazard remain subject to the policy's products-completed operations aggregate..
- International Risk Management Institute (IRMI): Designated construction project general aggregate limit endorsement (glossary entry) — accessed 2026-10-18; supports that the ISO designated construction project general aggregate limit endorsement is CG 25 03, that it makes the general aggregate apply separately to each designated project, that it does not affect the products-completed operations aggregate, and that a separate designated-project products-completed operations aggregate endorsement exists..
- International Risk Management Institute (IRMI): Commercial Umbrella Policy—A Few Things To Consider (Craig Stanovich, June 2024) — accessed 2026-10-18; supports that whether an umbrella aggregate applies per project or per location depends on the umbrella's own aggregate wording and endorsements, which can restrict the umbrella aggregate to one annual amount regardless of how the underlying CGL aggregate applies..
- ACORD: Certificates of Insurance: Frequently Asked Questions — accessed 2026-10-18; supports ACORD's statement that a certificate of insurance is not an insurance policy and does not provide, endorse, amend, extend, or alter policy terms; only an endorsement, rider, or amendment to the policy changes coverage, and a reference to a contract on a certificate does not provide coverage..
General insurance education, not legal, accounting, actuarial, professional-standards or policy-specific advice. Coverage depends on the policy form, endorsements, limits, deductibles, exclusions, jurisdiction and facts. Submission does not bind coverage or guarantee a quotation or carrier approval.