Finance Dictionary

Aggregate Deductible

An aggregate deductible agreement is a specialized insurance arrangement in which the policyholder is responsible for covering a cumulative total of losses up to a predefined limit during the policy period, rather than paying a separate deductible for each individual claim. This means that as multiple claims arise throughout the term, their deductibles add up toward the aggregate amount; once this threshold is met, the insurer becomes fully responsible for any additional covered losses for th...