An occurrence in insurance refers to an accident or harmful event that causes bodily injury or property damage during the policy period, as long as the damage was not expected or intended by the insured.
Understanding “Occurrence” in Plain English
The word occurrence shows up a lot in insurance policies, especially in liability insurance. While it sounds technical, the idea behind it is actually pretty simple.
An occurrence is a single accident or event that causes harm. This harm can be physical injury to people or damage to property. What matters most is that the event happens by accident and during the time the insurance policy is active.
In other words, if something goes wrong unexpectedly and causes damage, insurance may treat it as an occurrence.
What Makes Something an Occurrence?
For an event to count as an occurrence, a few key conditions must be met:
It Must Be Accidental
The event can’t be intentional. If the insured person or business planned or expected the damage to happen, it usually won’t be covered. Insurance is designed to protect against surprises, not deliberate actions.
It Must Cause Injury or Damage
An occurrence must result in bodily injury (harm to a person) or property damage (harm to physical property). Near misses or incidents without damage typically don’t qualify.
It Must Happen During the Policy Period
Timing is critical. The injury or damage must occur while the insurance policy is in force, even if the claim is filed later.
Injurious Exposure to Conditions
An occurrence doesn’t always have to be a sudden accident, like a slip and fall. It can also involve injurious exposure to conditions over time.
For example:
-
A tenant becomes ill after being exposed to mold in a building.
-
Employees develop health issues due to prolonged exposure to unsafe working conditions.
As long as the injury happens during the policy period and wasn’t expected or intended, it may still be considered an occurrence.
Real-Life Examples of an Occurrence
Let’s look at a few everyday situations to make this clearer.
Example 1:
A customer slips on a wet floor in your store and breaks an arm. You didn’t intend for this to happen. This accident would likely be considered an occurrence.
Example 2:
A contractor accidentally damages a client’s property while working on a job site. The damage was unintentional and happened during the policy period, so it may qualify as an occurrence.
Example 3:
A business unknowingly exposes workers to harmful fumes over several months. If injuries occur during the policy period, this exposure may count as an occurrence.
What Is Not an Occurrence?
Not every incident qualifies as an occurrence. Some common exclusions include:
-
Intentional harm or damage
-
Expected outcomes of risky behavior
-
Events that happen outside the policy period
-
Damage that doesn’t involve bodily injury or property damage
Understanding these limits helps avoid surprises when filing a claim.
Occurrence vs. Claims-Made Policies
The concept of an occurrence is closely tied to occurrence-based insurance policies. With these policies, coverage depends on when the injury or damage happens, not when the claim is reported.
This is different from claims-made policies, which focus on when the claim is filed. Occurrence-based coverage can be valuable because it may protect you years later for accidents that happened while the policy was active.
Why the Definition of Occurrence Matters
Knowing how an occurrence is defined helps you understand what your insurance actually covers. It affects how claims are handled, how many claims count against your policy limits, and whether coverage applies at all.
For businesses and individuals alike, this definition plays a major role in risk protection and financial security.
The Bottom Line
In insurance, an occurrence is an accidental event—including harmful exposure to conditions—that causes bodily injury or property damage during the policy period and was not expected or intended by the insured.
Understanding this concept makes it easier to read insurance policies, evaluate coverage, and feel more confident when the unexpected happens.
Want to explore something else? Here’s another article you might enjoy:
