What does 1000000 per occurrence mean?
Asked by: Immanuel Lind | Last update: October 8, 2025Score: 4.2/5 (74 votes)
What does pay per occurrence mean?
What is a per-occurrence limit? A per-occurrence limit is the maximum amount your insurance company will pay for a single incident. The payout is calculated after you meet your deductible.
What does $1 million per occurrence $2 million aggregate mean?
Your insurance company will only cover claims from an incident up to the per-occurrence limit. With a $2 million aggregate limit, if your general liability claims add up to more than this in a coverage year, your insurance company would cover up to $2 million in claims.
What is better, claims made or occurrence?
In short, occurrence-based policies provide ample coverage as long as you keep renewing them. For this privilege, you'll generally pay more than you would for claims-made policies. With claims-made policies, the amount of coverage you purchase must last for as long as you keep your policy.
What does occurrence mean in an insurance policy?
An occurrence policy covers claims made for injuries sustained during the life of an insurance policy, even if they're filed after the policy is canceled. They cater specifically to events that may cause injury of damage years after they occur, such as exposure to hazardous chemicals.
What is a Per Occurrence Limit? - Insurance 101
What is an example of an occurrence policy?
An occurrence policy protects you from any incident occurring while the policy is in force. The policy then covers those incidents forever. For example, you buy a policy in 2010, treat Client X in 2011, and terminate the policy in 2012. In 2015, Client X sues you for an incident that occurred in 2011.
What is an example of occurrence?
Street-fights are an everyday occurrence in this area of the city. Death was an everyday occurrence during the Civil War. It's still not possible to accurately predict the occurrence of earthquakes. There have been several occurrences of theft in the area recently.
Can you switch from occurrence to claims made?
Claims-Made policies provide coverage for 'claims' only when BOTH the alleged incident AND the resulting 'claim' happen during the period the policy is in force! Switching from an "Occurrence" to a "Claims Made" form is the least perilous change.
What is the difference between per claim and per occurrence?
A claims-made policy only covers those that occur and are reported within the policy's timeframe, unless tail coverage is also purchased. An occurrence policy provides lifetime coverage for incidents that take place during a policy period, regardless of when the claim is reported.
What is the difference between an accident and an occurrence in insurance?
The term "occurrence" encompasses more than just an accident because accident is narrower in scope than occurrence. This can be seen in those cases decided before the occurrence wording was adopted. Accident, according to these cases, did not include coverage for damage occurring over time.
What does $100000 per occurrence mean?
Suppose your per-accident limit is $100,000. That means if you cause a car accident that injures three people, the most your bodily injury liability would pay for their combined expenses is $100,000 (and only up to the per-person limit for each person injured).
What does $300000 per occurrence mean?
Per-occurrence limits define how much a policy will pay for any one incident or claim. Aggregate limits define how much a policy will pay over the policy's duration.
What is the difference between per occurrence and aggregate insurance?
Be aware that the occurrence limit is different from the aggregate limit. An occurrence limit is the max an insurance company will cover per claim. The aggregate limit is the total claim costs an insurer will cover during a policy period, which is typically one year.
What is the maximum per occurrence limit?
Per occurrence limit is the maximum amount the insurer will pay for all claims resulting from a single occurrence, no matter how many people are injured, how much property is damaged, or how many different claimants may make claims.
What is the meaning of payment occurrence?
Payment Occurrence means the settlement or final adjudication (without any ability to further appeal by either party) as to all demands, claims, counterclaims, cross-claims, third-party-claims, damages, fees (including attorneys' fees), costs and expenses, brought and raised, on any matters arising from or related to ...
What is considered an occurrence?
What Does Occurrence Mean? In the insurance world, an occurrence refers to an event or incident that results in bodily injury or property damage during the policy period. It's a critical concept that distinguishes one-time, unforeseen incidents from ongoing or intentional acts.
What does 2000000 aggregate mean?
The big bucket represents your general aggregate limit, which is the maximum the insurance company will pay, regardless of claim quantity. The big bucket can fit up to $2 million worth of liability, regardless of the number of claims. As a liability claim happens, it will begin to fill up a small bucket.
How does a per occurrence deductible work?
a per-claim insurance. A per occurrence deductible is like most auto or homeowners insurance you might be familiar with; you pay the $500, and that's the max you'll pay when something happens. But if your deductible is per claim, that means a separate deductible gets applied to every claim filed in a single occurrence.
What is an example of occurrence vs claims-made?
General liability policies are commonly occurrence-based policies while management liability policies tend to be written on a claims-made basis. Certain policies like Media Liability can be either claims-made or occurrence, depending on the insurer.
How does an occurrence policy work?
What Is an Occurrence Insurance Policy? An occurrence policy provides coverage for incidents that happen during your policy period, regardless of when you file a claim. These policies can be more expensive than a claims-made policy because of how long coverage applies.
Can you make the same insurance claim twice?
On the other hand, there are times when trying to file multiple claims on the same accident would be considered “double dipping” or insurance fraud – and this is illegal. You cannot file redundant claims with more than one insurance company in an attempt to get paid twice for the same damages.
Do I want claims-made or occurrence malpractice?
From a pricing viewpoint, occurrence policies are more expensive than comparable claims-made policies because they provide coverage for incidents that occurred during the policy year regardless of when the claim is reported. And the occurrence policy provides a separate limit for each year protection is purchased.
What is an example of per occurrence?
For example, let's say you purchase a policy with a $500,000 per occurrence limit and a $1 million aggregate limit. If you are a carpenter and the collapse of an outdoor deck you built leads to four claims of $200,000 per occurrence, you'll be covered.
How do occurrences work?
An occurrence is an unscheduled absence or late arrival (Not protected by FMLA, WC, etc.). For example, arriving 30 minutes late would count as an occurrence and calling in to use sick leave, vacation, or comp time for a day would be an occurrence.
What is the short meaning of occurrence?
: the action or fact of happening or occurring.