What does occurrence mean in insurance?
Asked by: Marianne Sauer | Last update: October 2, 2025Score: 4.6/5 (4 votes)
What is an example of an occurrence in insurance?
Any accident or incident that can harm a person or their property may count as an occurrence. If a third party trips over a toolbox left sitting at your building site and injures themself, that's an occurrence.
What does per occurrence mean for insurance?
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 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 is considered an occurrence?
occurrence. noun. oc·cur·rence. : something that takes place. especially : an accident, event, or continuing condition that causes personal or property damage that is unintended or unexpected from the standpoint of an insured party making a claim.
What is a Per Occurrence Limit? - Insurance 101
What is an example of an occurrence?
Getting headaches has become a common occurrence for her. Lightning is a natural occurrence.
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 are the benefits of occurrence?
The most obvious benefit of an occurrence policy is that it offers long-term protection. As long as coverage is in place when the incident occurred, it's possible to make a claim on that period years into the future. Another advantage is that occurrence policy costs tend to be fixed.
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.
How do I know if my insurance is claims made or 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 occurrence deductible?
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 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 the occurrence policy?
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.
What does per-occurrence mean in insurance?
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 is the first thing an insurer must investigate before taking on a claim?
Insurance companies must search for and consider evidence that supports coverage for the claim. Thus, insurance companies cannot close their eyes to evidence that supports coverage and focus solely on the evidence that denies coverage. Too narrow a focus of investigation?
What is a single occurrence?
Single Occurrence means all causes or events which occur within 96 consecutive hours of the first cause or event causing loss or damage, shall be considered as one occurrence.
Which is better claims made or occurrence-based?
A claims-made policy only covers incidents that happen and are reported within the policy's timeframe, unless a "tail" is purchased. An occurrence policy has lifetime coverage for the incidents that occur during a policy period, regardless of when the claim is reported.
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.
What is a claims occurrence policy?
Under a 'claims occurring' basis of cover, a policy will provide cover for an insured event that occurs within the policy period, regardless of whether the claim is made during the policy period or some time afterwards (providing it is not statue barred).
What is an example of occurrence in insurance?
Examples of common occurrences insurance covers
As long as your home insurance is active, common occurrences like these are generally covered: A child falls off your porch and breaks their arm. A branch from your tree falls on your neighbor's car. A delivery driver slips on your icy walkway.
What counts as an occurrence?
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 impact of occurrence?
Impact of occurrence is the probability that a noncompliant incident will have a measurably negative effect on the business, such as financial resources being depleted; damage to the business's reputation; destruction of vital documents due to a data security breach; or even the potential incarceration of the CEO, CFO, ...
What is notice of occurrence in insurance?
Notice to the insurer of an occurrence must include the time, place, and circumstances of the occurrence, a description of any resulting injury or damage, and the names and addresses of injured persons and witnesses.
What is a thing that happens an occurrence?
occurrence noun (HAPPENING)
something that happens: Street-fights are an everyday occurrence in this area of the city. Synonyms. episode (EVENT) event.
What is the occurrence of an accident?
An occurrence is an accident that results in damage to your property or yourself. It has to happen during your policy term (otherwise it won't be covered by your insurer), and can include continuous exposure to the same harmful condition. When an occurrence happens, it's on you to notify your insurer by filing a claim.