Occurrence in the insurance world refers to a single event or accident that results in a loss. It’s a key term used in many types of policies, particularly liability insurance.
For example, if you accidentally rear-end another car, causing damage to their vehicle, this would be considered an occurrence. Or, if your dog bites a neighbor, this would another case.
The occurrence-based policies are designed to cover losses that arise from a single event, regardless of how many claims may be filed as a result. This means that if multiple people are injured in a single car accident, the insurance company would only consider it one occurrence and cover all related claims under a single policy limit.
At PSIC, we use an occurrence-based approach to determine liability and property damage coverage for all our policies, including Homeowners, Renters, Condo, and Motorcycle insurance. This means that the limits set on your policy apply to each individual occurrence, rather than per claim.
For example, if you’re involved in a motorcycle accident that results in multiple injuries, we would consider it a single occurrence. The liability limit on your policy would apply to the entire incident, covering the costs of legal defense, settlements, or judgments for all parties involved.
This occurrence-based approach provides you with greater protection and peace of mind. It ensures that you won’t be left financially vulnerable if multiple claims arise from a single incident.
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Last updated: June 27, 2023
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