What is the $1 million per occurrence limit?
Asked by: Sandy Lockman | Last update: October 27, 2025Score: 5/5 (66 votes)
What is the million dollar policy limit?
The policy limit caps how much compensation or benefits an insurance company will pay in case of a claim payout. For example, get into a car accident and have a $1 million policy limit. They will only pay that much for your damages (property damage, lost wages, hospital bills, etc.)
What is an example of $1 million per occurrence $2 million aggregate?
For example, if you have a GLI policy with a $1 million per-occurrence limit and a $2 million general aggregate limit and you file a claim valued at $1.1 million, your insurance would pay the $1 million because of the occurrence and your business would likely pay the remaining $100,000.
What does per occurrence limit mean in 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 the occurrence limit rule?
The each occurrence limit is the amount of coverage that will apply to any one occurrence (incident or accident), even if it results in more than one lawsuit. For example, in a bleacher collapse incident involving multiple injuries and lawsuits, the entire $1 million limit would be split between all claimants.
What is a Per Occurrence Limit? - Insurance 101
What does 1 million 2 million aggregate mean?
Because your per-occurrence limit is $1 million, both lawsuits will be covered. However, you've now reached your $2 million aggregate limit. If you needed to file any additional claims that year, even minor ones, the insurance company is not required to reimburse you because you've reached your aggregate limit.
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.
What does $300,000 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.
Which is better, occurrence or claims made?
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 loss occurrence limit?
The loss occurrence limit refers to the maximum amount payable to the cedant for any one loss causing incident. The incident may cause one loss, multiple losses, or a series of losses.
What percentage of Americans have $1 million in investments?
According to the 2022 Survey of Consumer Finances by the Federal Reserve, only about 12% of U.S. households have a net worth over $1 million. This means that the vast majority – 88% – are nowhere near that level.
What is the difference between per claim and each occurrence?
The amount of coverage.
A claims-made policy covers your claims at your current coverage level; whereas, an occurrence policy covers you at the amount of coverage you had during your policy year.
What is the largest pain and suffering settlement?
The largest personal injury settlement ever is the Tobacco Master Settlement Agreement in 1998, valued at $206 billion, where major tobacco companies settled to compensate for smoking-related health care costs.
What happens if insurance doesn't want to settle?
If your insurance claim does not settle, your attorney can pursue a personal injury lawsuit on your behalf in civil court. Filing a lawsuit will involve: Preparing and filing legal documents. Gathering evidence.
How much is $1 million dollar liability?
How Much Is a $1 Million General Liability Insurance Policy? A 1 Million Dollar General Liability Insurance Policy can cost $40 Per Month up to $150 Per Month for most small businesses. Of course, the cost of general liability insurance varies depending on the size of the operation and coverage amounts selected.
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 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.
What is the unlimited retroactive date?
Unlimited retroactive dates are the preferred cover for an insured because there are no limitations on when the breach of professional duty must have occurred. However, for the policy to respond, the claim must be made and notified during the policy period irrespective of when the breach of professional duty occurred.
What does 1000000 per occurrence mean?
The per occurrence limit is the most the insurer will pay for damages resulting from one occurrence or claim. The policy will not pay for more than this limit for any one incident. A standard general liability policy will have a $1,000,000 per occurrence coverage limit.
Is it better to have CSL or split limits?
A single-limit policy can provide extra protection compared to a split-limit policy, especially when medical bills are high and property damage is low, or vice versa. Because of this extra financial protection, a combined single-limit policy typically comes with a higher premium cost than a split-limit policy.
Do I want occurrence or claims-made?
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 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.
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 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.