Occurrence — Insurance Claims Definition
In liability insurance, an accident or harmful event during the policy period; in property, an event causing loss.
General liability policies written on an occurrence form cover bodily injury or property damage that occurs during the policy period, even if the claim is reported years later. This contrasts with claims-made policies that require the claim be made during the policy period.
Defining when injury or damage "occurred" can be contentious in latent disease or progressive damage cases.
Examples
A contractor's CGL occurrence policy covers a visitor who falls in 2020 even if the lawsuit is filed in 2023, if the policy period included the fall date.
Common Mistakes
Buying occurrence-based tail coverage vs. claims-made retro dates confuses businesses. Progressive water damage may trigger disputes over which policy year applies.
