What is the difference between per accident and per occurrence?
Asked by: Amaya Nienow | Last update: December 31, 2025Score: 5/5 (48 votes)
What is the difference between an accident and an occurrence?
An occurrence is another word for an accident – in insurance, it refers to any bodily injury or property damage that happens when your policy is active.
What is the meaning of per occurrence?
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.
Is it better to have occurrence or claims made?
The claims-made policy costs at least 35% less when you compare the cost of buying a claims-made policy and the unlimited tail against having occurrence coverage for the same period. The savings increase if you qualify for a free death, disability or retirement tail.
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.
What is the difference between per occurrence and per aggregate
What is the difference between per occurrence and per accident?
Generally, per accident and per occurrence mean the same thing. One occurrence is a single, uninterrupted cause that can result in one or a number of bodily injuries or property damage.
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).
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 difference between per claim and per 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 does occurrence mean in insurance?
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 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.
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.
Does occurrence mean incident?
occurrence, event, incident, episode, circumstance mean something that happens or takes place. occurrence may apply to a happening without intent, volition, or plan. an encounter that was a chance occurrence. event usually implies an occurrence of some importance and frequently one having antecedent cause.
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 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 is better, claims made or occurrence?
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.
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 per occurrence basis?
Per-occurrence limit is the most your insurance company will pay for a given incident. With occurrence policies, your aggregate limit resets every year. For example, let's say you purchased a $1 million occurrence-based general liability policy. In year one, you get sued for $1 million.
Is property insurance claims made or occurrence?
Virtually all homeowner's coverages and automobile coverages are “occurrence policies.” With this type of coverage, the occurrence (negligent act and accident) must occur within the policy coverage period or term of the policy.
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.
Is any one occurrence the same as each and every claim?
For this reason, “any one claim” is also frequently referred to as “per occurrence”, “per claim” and “each and every claim”.
Is per claim or per occurrence better?
Typically for the first five years of coverage, claims made policies tend to be less expensive than occurrence policies. But keep in mind that as your business faces more exposures, your premiums will increase; usually, after five years, the cost of a claims-made policy begins to even out with occurrence policies.
Which is better, a collision or an uninsured motorist?
Deductible Comparison: UMPD generally has a lower deductible compared to collision coverage. This can be beneficial in reducing immediate out-of-pocket costs. Broader Coverage: UMPD can cover not just your vehicle but also other property, such as a fence or a garage, if damaged by an uninsured driver.
Is per incident the same as per occurrence?
Incident limits, also known as per-occurrence limits, refer to the maximum amount an insurer will pay for a single claim or incident.