What limits are generally included in a general liability policy?

The correct choice highlights the two primary types of limits found in a general liability policy: aggregate limits and per incident limits.

Aggregate limits refer to the maximum amount an insurer will pay for all claims within a designated policy period, typically one year. This limit is essential because it provides a ceiling on the insurer's total liability over the entire policy term, ensuring that the policyholder understands the overall financial protection offered.

Per incident limits, on the other hand, specify the maximum amount the insurer will pay for a single claim or incident. This is crucial for both the insurer and the insured to delineate the extent of coverage for individual occurrences, allowing the policyholder to manage risks associated with specific events or claims.

Together, these limits provide a structured framework for liability coverage, helping businesses navigate potential legal claims while maintaining financial stability. Understanding these limits is vital for policyholders to ensure they have adequate protection that meets their needs.