Per-Project vs Shared Aggregate
Whether the policy's general aggregate limit applies once across all projects or resets independently for each job site. This decision is critical for tower contractors running multiple concurrent builds where a single catastrophic loss could consume the entire annual aggregate.
Per-Project Aggregate
Advantages
- +Each project receives its own full aggregate limit, isolating loss experience between sites
- +A crane collapse at one tower site does not reduce available limits for claims at other sites
- +Satisfies MSA requirements from sophisticated clients who mandate dedicated limits per project
- +Reduces the likelihood of needing to tap umbrella or excess layers for routine claims at unrelated sites
Disadvantages
- -Higher premium than a shared aggregate, typically 10% to 20% additional cost
- -Requires clear project definitions to avoid disputes about where one project ends and another begins
- -Not all carriers offer per-project aggregate for tower class codes
- -Does not help if the contractor has only one or two active projects at a time
Shared (Policy-Wide) Aggregate
Advantages
- +Lower base premium due to simpler limit structure
- +Standard offering from all carriers without special underwriting approval
- +Adequate for small tower contractors with limited concurrent project exposure
- +Simpler claims reporting without project-by-project allocation questions
Disadvantages
- -A large loss on one project can exhaust the aggregate, leaving other projects without CGL coverage
- -Does not meet many MSA requirements for dedicated per-project limits
- -Creates urgency to purchase aggregate reinstatement after a significant claim
- -Upstream clients may require higher umbrella limits to compensate for the shared structure
Bottom line for tower contractors
Tower contractors managing three or more concurrent sites should carry per-project aggregate. The additional premium is minor compared to the catastrophic risk of aggregate exhaustion during a multi-site season. Contractors with a single active project at any time can operate with shared aggregate but should revisit the decision as volume scales.