Occurrence

Occurrence, in the context of insurance, refers to an event or a series of related events that results in insured losses or liabilities. It is a critical term in various types of insurance policies, particularly in liability insurance. An occurrence may be a sudden event, such as a slip and fall accident, or a continuous or repeated exposure to substantially the same harmful conditions, such as long-term exposure to harmful chemicals. The significance of the term ‘occurrence’ lies in determining the applicability of an insurance policy to a claim. Insurance coverage is often structured around the number and scope of occurrences, as policies may limit the amount of coverage or number of claims based on whether incidents are considered separate occurrences or part of a single event. The definition of an occurrence is crucial in understanding the coverage provided by an insurance policy and can significantly impact the claims process and the determination of policy limits.