Glossary

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.

Also called: each occurrence limit, per-accident limit, per-loss limit

The per-occurrence limit, labeled "Each Occurrence" in the ISO general liability declarations, caps what the insurer pays for one occurrence. In CG 00 01 it applies to the sum of Coverage A damages and Coverage C medical payments from that occurrence, however many claimants, insureds or claims are involved. It sits beneath the general aggregate, the most the policy pays for all occurrences in the policy period. A common small-business program is $1 million per occurrence and $2 million general aggregate.

Say a balcony collapse injures three customers and their claims total $1.8 million (a hypothetical). With a $1 million per-occurrence limit, the primary policy pays at most $1 million, and the remaining $800,000 falls on the business unless an umbrella policy responds. The aggregate has not been used up, but it is irrelevant because the per-occurrence limit applies first.

Three things trip owners. Additional insureds share the same limit; they do not each get their own. Contracts often require a minimum per-occurrence amount, so check that your declarations match. And defense costs in a general liability policy are generally paid in addition to the limit, unlike many professional liability policies. Auto policies often use a combined single limit instead of splitting by type of damage. The guide on commercial policy limits shows how the pieces interact, and the How much umbrella coverage do I need? helps you decide whether to buy more.

Last reviewed October 10, 2026

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Related terms

Aggregate limit The most an insurer will pay for all covered claims during a policy period, however many separate occurrences or claims there are. General aggregate The most a general liability policy pays in one policy period for all claims other than products-completed operations, however many occurrences there are. 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. Combined single limit One dollar cap per accident on everything a liability policy pays for injuries and property damage together, instead of separate caps for each. Umbrella policy A liability policy that adds limits above underlying general liability, auto and employers' liability policies and may cover some claims they do not.

Related guides

Additional insured endorsements explained What CG 20 10, CG 20 37, CG 20 26 and CG 20 38 do, how the 04 13 wording limits additional insured coverage, and why a certificate is not the endorsement. BOP vs general liability: which one do you need? A BOP is general liability plus property and business income in one policy. When the package is the better buy and when stand-alone general liability fits. 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. Commercial umbrella insurance How a commercial umbrella adds liability limits above your CGL, auto and employers' liability, when it drops down, what it excludes, and how to size it. Commercial vs personal insurance: where personal policies stop Homeowners, auto and umbrella policies exclude or cap most business activity. See the ISO homeowners wording, where the gaps are and what commercial cover adds. Contractor license insurance and bond requirements by state What each state's contractor license requires in liability insurance, workers' comp proof and bonds, for all 50 states and DC, from the agencies' own rules.

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Home health care insurance Home health and home care agencies: professional liability, abuse and molestation, hired and non-owned auto, comp, EPLI, cyber and Medicaid bond rules. Counselor and therapist insurance Counselor and therapy practices: professional liability, telehealth, license defense, abuse sublimits, cyber and HIPAA, and state mandates such as Wisconsin.

Related tools

How much umbrella coverage do I need? Score the exposures that drive large liability claims, apply any contract-required limit and check your primary limits to get a starting umbrella range.

Related en español

¿Cuánto seguro de responsabilidad civil necesita su negocio? Casi todo negocio pequeño empieza con $1 millón por ocurrencia y $2 millones en el agregado. Qué sube los límites, cuándo conviene un paraguas y un ejemplo. Endosos de asegurado adicional, explicados Qué hace cada endoso CG 20 10, CG 20 37, CG 20 26 y CG 20 38, cómo la edición 04 13 limita la cobertura y por qué el certificado no es el endoso. Seguro de responsabilidad civil general: qué cubre y qué no Paga lesiones y daños a terceros y reclamos por publicidad, y defiende la demanda. Qué excluye el formulario ISO y qué determina el precio. Seguro de responsabilidad por venta de alcohol y leyes dram shop Por qué la responsabilidad civil general excluye el alcohol, cómo las leyes dram shop responsabilizan al vendedor, qué cubre la póliza y su precio. Seguro paraguas comercial (commercial umbrella) Cómo un paraguas comercial suma límites sobre su CGL, auto y responsabilidad patronal, cuándo baja a primario, qué excluye y cómo dimensionarlo.