What is an occurrence in insurance?
Asked by: Theodora Marks III | Last update: April 10, 2025Score: 4.3/5 (61 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 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 is the difference between an accident and an occurrence?
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 difference between claims and 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 an Occurrence Insurance Policy?
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.
How long does tail coverage last?
How Long Should Tail Coverage Last? If you get tail coverage, it can last a year or more. You can work with your insurance agent or insurer to see how long of an extended reporting period is right for your business. The longer your tail coverage, the longer your protection can last.
What is defined as an occurrence?
something that happens; event; incident: We were delayed by several unexpected occurrences.
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 the reason for accident occurrences?
Drivers: Over-speeding, rash driving, violation of rules, failure to understand signs, fatigue, alcohol. Pedestrian: Carelessness, illiteracy, crossing at wrong places moving on carriageway, Jaywalkers.
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 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 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 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.
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 is something that happens an occurrence?
An occurrence is an instance of something that happens repeatedly. The occurrence of Lyme disease is more frequent in New England than it is in other parts of the country. As soon as authorities see an occurrence of rabies, they send warnings out to people who live in the area.
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.
Is claims made or occurrence better?
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 the legal definition of occurrence?
occurrence n
: 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.
Which of the following is the best definition of an occurrence?
An occurrence is something that happens. Complaints seemed to be an everyday occurrence. The food queues have become a daily occurrence across the country. The occurrence of something is the fact that it happens or is present.
When to use occurrence?
occurrence noun (HAPPENING)
something that happens: 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.
Do you need tail coverage for occurrence?
No. The occurrence policy already guarantees coverage for what happened while you were insured. Since you are already covered, tail coverage is not necessary.
Why is tail coverage so expensive?
Premiums for tail insurance are generally very high, up to 300 percent of the most current policy premium. Tail coverage is expensive because it covers past insured events that may not appear for several years. Some claims-made policies offer free tail coverage but only upon death, disability or retirement.
Who typically pays for tail coverage?
Almost whenever a physician is employed by a hospital or health network. The employer will pay for your tail insurance. If you're in private practice or an employee of private practice, 9 times out of 10, they'll have claims-made coverage.