What is an occurrence policy?

What is an occurrence policy?

An occurrence-based policy covers losses that happen during the time you have the policy, regardless of when you file a claim. It is designed to protect you against long-tail events – incidents that could cause injury or damage years after they occur.

What does per person per occurrence mean?

In most instances, you will see or hear policy limits referred to with two numbers — the per person and per occurrence limits. The “per occurrence” limit is that maximum that the insurance company could be required to pay in total, regardless of the number of people injured in a wreck.

What is a per occurrence limit in insurance?

The per-occurrence limit is the most your insurance company will pay for a single covered loss under the terms of your policy.

What is the difference between per accident and per occurrence?

Per Claim will respond to individual claims brought against you, even if it arises out of one singular event or accident. This coverage can leave you with several deductibles as opposed to one. Per Occurrence coverage protects a company from millions, by combining it into one deductible.

What is considered an occurrence?

An occurrence includes a single event and any harm that is repeated or continues as a result of that event.

What does the occurrence basis cover in liability insurance?

An occurrence basis policy is one that covers the insured for liability related to events that occurred during the policy period, even if the claim itself is only filed after the policy period has expired.

What is the difference between per occurrence and aggregate?

Per-occurrence limits and aggregate limits both define maximum payouts, but they do so in different settings. 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 a per occurrence deductible?

Most property insurance policies contain a per-occurrence deductible provision that stipulates that the deductible amount specified in the policy declarations will be subtracted from each covered loss in determining the amount of the insured’s loss recovery.

Is per claim or per 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.

How does a per occurrence deductible work?

What is the legal definition of an occurrence?

Occurrence is defined as “an accident that includes continuous or repeated exposure to substantially the same general harmful conditions during the period of policy, which causes bodily injury or damage to property.” [Allstate Ins. Co. v.

What does occurrence basis mean?

Occurrence Basis — for coverage to be provided, the act giving rise to a claim needs to occur within the policy period. The claim does not need to be reported during the policy period.