What is an example of occurrence in insurance?
Asked by: Amanda Conroy | Last update: March 17, 2025Score: 4.8/5 (49 votes)
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 an example of occurrence basis?
Occurrence-based and claims-made policies are often found in specific types of insurance coverage. For example, your general liability, commercial auto, and umbrella liability insurance will be occurrence-based. If you own a business with more assets at risk, it may be best to invest in an occurrence-based policy.
What is an example of per-occurrence?
For example, say your policy's per-occurrence limit was $1 million and the aggregate limit was $2 million. Your company gets sued on two separate occasions in the same year, each time for $1 million. Because your per-occurrence limit is $1 million, both lawsuits will be covered.
What is an occurrence of an insured event?
In the insurance world, an “occurrence” refers to an event that causes property damage during a policy period. This can encompass a wide range of incidents, from natural disasters like fires, floods, and earthquakes to manufactured events such as theft, vandalism, or accidents.
What is a Per Occurrence Limit? - Insurance 101
What is an example of occurrence?
occurrence noun (HAPPENING)
something that happens: Street-fights are an everyday occurrence in this area of the city.
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. However, if the damage or injury is caused on purpose, your liability insurance won't cover you.
What is an example of claims made vs occurrence?
For example, your general liability, commercial auto, and umbrella liability insurance will be occurrence-based. Claims-made policies, on the other hand, will often be found in your directors and officers coverage and professional liability insurance, which is also referred to errors and omissions insurance.
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.
What is an example of a per occurrence deductible?
Common examples of per-occurrence deductibles are auto insurance or homeowners' insurance deductibles. With these types of plans, you often have to pay a full deductible — such as $400 — every time you file a claim with your insurance company.
What is the difference between accident and 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 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 considered a regular occurrence?
Regular events have equal amounts of time between them, so that they happen, for example, at the same time each day or each week.
What is the occurrence limit for insurance?
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.
Which of the following would not be considered an occurrence?
Final answer: An intentional act by the insured resulting in harm would not be considered an "occurrence" under a CGL policy and is therefore not covered, as CGL policies generally exclude coverage for intentional harms.
What are common occurrences?
A broad and frequent situation, epidemic or common occurrence. The quality or fact of being common or great in amount. Noun. ▲ A broad and frequent situation, epidemic or common occurrence.
What are the examples 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.
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 legal definition of occurrence?
: something that takes place. ;esp. : 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 occurrence insurance?
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 are 2 types of claims?
Three types of claims are as follows: fact, value, and policy. Claims of fact attempt to establish that something is or is not the case. Claims of value attempt to establish the overall worth, merit, or importance of something. Claims of policy attempt to establish, reinforce, or change a course of action.
How do I know if my policy 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 better, claims made or occurrence?
Claims-made coverage is portable. You can take the coverage from one insurance company to another. The advantage to an occurrence policy is its permanence. The period of time you are insured under an occurrence policy is protected forever by the policy you had that year.
What is defined as an occurrence?
something that happens; event; incident: We were delayed by several unexpected occurrences.
What is the difference between an accident and an occurrence?
Standard commercial general liability (CGL) insurance policies provide coverage for damages the policyholder is legally obligated to pay because of property damage or bodily injury caused by an “occurrence.” CGL policies typically define “occurrence” as an “accident.” Courts define an accident as “an unexpected ...