Glossary

Occurrence

In liability insurance, the event that triggers coverage and determines which limit and deductible apply; the ISO CGL form defines it as an accident.

Also called: covered occurrence, accident, loss event

Occurrence is the unit a liability policy counts. The ISO CG 00 01 form defines it as an accident, and it treats continuous or repeated exposure to substantially the same general harmful conditions as one accident. The word matters because limits and deductibles attach to it: each occurrence draws on the per-occurrence limit, and every occurrence up to the policy's aggregate limit is paid from the same annual pool.

Counting is where disputes arise. Most courts use a "cause" test, asking how many proximate causes produced the injuries. A single leaking roof system that damages a dozen tenants' units might be one occurrence under that test; a series of separate negligent acts might be several. The answer cuts both ways. One occurrence means one limit, which caps recovery at, say, $1 million (a hypothetical). Several occurrences open more of the aggregate but trigger a deductible or retention each time.

An occurrence is not an occurrence policy, which is a coverage trigger based on when the injury or damage happens. Define the term in contracts when it matters, and keep the language consistent across the primary and umbrella policies. The guide on commercial policy limits shows how per-occurrence and aggregate limits interact, and the guide on occurrence vs claims-made policies covers the trigger.

Last reviewed October 10, 2026

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Related terms

Occurrence policy A liability policy that covers injury or damage happening during the policy period, no matter when the claim is made, even after the policy has expired. Per-occurrence limit The most a liability policy will pay for all damages arising from a single occurrence, however many people are hurt or claims are made. Aggregate limit The most an insurer will pay for all covered claims during a policy period, however many separate occurrences or claims there are. Deductible The amount of a covered loss the policyholder bears before the insurer pays, set in the policy and subtracted from the loss. Bodily injury Physical injury, sickness or disease suffered by a person, including death resulting from it; the harm that triggers liability coverage for injuries.

Related guides

The most common mistakes businesses make with claims Twelve avoidable claim mistakes, from late notice and missed proof-of-loss deadlines to weak business income records, with ISO deadlines and fixes. Inside the CGL policy: Coverages A, B and C How the ISO commercial general liability form's three coverages work: the triggers, the key exclusions, supplementary payments and which limit each claim uses. Commercial policy limits: per occurrence, aggregate and sublimits How per-occurrence limits, aggregates and sublimits work in CGL, property and workers' comp policies, with an example of an aggregate running out. Named storm deductibles: how percentage wind deductibles work A named storm deductible is a percentage of insured values, not of the loss. How triggers, per-location rules, flood and buy-back policies decide what you pay.

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