Occurrence
An accident, including repeated exposure to substantially the same harmful conditions, that causes bodily injury or property damage during a policy period.
What does Occurrence mean in insurance?
In liability insurance, an occurrence determines when coverage is triggered and how policy limits apply. Under an occurrence policy, the policy in force when the injury or damage happens can respond even if the claim is reported later.
Exam-ready definition
An accident or repeated exposure that results in bodily injury or property damage during the policy period.
Example
A pipe leaks slowly and damages a neighboring office. The repeated exposure may be treated as one occurrence.
Common misconception
An occurrence is not necessarily a sudden event, and it is not the same as the date a claim is filed.
Sample insurance exam question
Which policy is generally triggered by when injury or damage occurs rather than when the claim is reported?
Show answer
An occurrence policy.
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Which of the following best describes the concept of Occurrence?