In insurance, 'Occurrence' refers to the maximum amount your insurance company will pay for a single claim or event. 'Aggregate', on the other hand, is the total amount your insurer will pay for all claims during your policy period. For instance, if your policy has a $1 million occurrence limit and a $2 million aggregate limit, each claim is covered up to $1 million, but the total coverage for the policy period caps at $2 million.

Imagine you're a painting contractor with these policy limits. During the year, you have three separate accidents, each resulting in $800,000 in damages. Your policy covers the first two incidents, while only covering $400,000 of the third. Any further incidents would not be covered.

Understanding 'Occurrence' and 'Aggregate' helps in:

• Assessing how much coverage you need based on your business risks.
• Planning for potential multiple claims within a policy period.
• Ensuring your business isn't underinsured, which could lead to out-of-pocket expenses.