What Does Occurrence Mean In Insurance? Awesome Facts For You!

What does occurrence mean in insurance? It is an occurrence policy wherein incidents that occur during such a policy period are covered. It is at any time you have filed a claim. The policy may somehow be costlier as compared to a claims-made policy. It is due to how the extended coverage will apply.

The event, incident, occurrence, and circumstances are something that takes place or that happens.

what does occurrence mean in insurance

It can apply best to a happening with no volition, intent, and or plan. It’s a usual encounter that equates to an event that occurs by chance. It implies the occurrence of importance and one that has an antecedent cause. Here’s more other related information on the occurrence in insurance


Example of an Occurrence Insurance

Your business may have a commercial form of coverage for general liability insurance. It’s then clearly written on the occurrence form. For example, a customer may have broken his arm after suffering a slip & a fall in the business during a policy period. It’s when they don’t submit a report of the incident. It was until then that the policy expired. Since they were hurt while the policy is still effective, insurance coverage can still be claimed.


Tail Coverage Should Still Be Required Or Not

Under this occurrence policy, there’s no need to have tail coverage. You will get coverage already for a claim. It is true if the incident has ever occurred during such a policy period. It is although you submit a report of claims after the expiration date of the policy. In this sense, tail coverage will no longer be needed.


Occurrence Policy Versus Claims-Made

Decide which is most essential for you to the occurrence policy or the claims-made. Then, settle with one that is good for your business. Remember that every business has its uniqueness. While one works for others, it might not work well for you. So, think about it.

Understand how these two insurance policies cover claims. Then, you’ll get the protection needed if things go unexpectedly.

Consult an experienced insurance company that will prioritize customers. A team of specialists will be there to help you anyway. You will always be helped at filing a claim or getting coverage.


Understanding Claim Occurrence

Lifetime coverage is included as part of the occurrence policy. It is considering the incidents that may occur during the policy period. It is also whether the claim has been reported. As with the policy for claims-made, it just covers incidents reported to have happened in the time frame. It is unless a purchase of tail extension is carried out.


Property Insurance, An Occurrence-based or Not

Most of the P&C policy insurance is regarded as the occurrence policy. It is less likely to be complicated as compared to the 2 coverage types. It’s up to you to submit the claim years after ending up on a policy period. The event that has pushed for the claim should occur during the coverage period.


General Liability Form of Occurrence

Occurrence in the general liability coverage form is an accident like a repeated or continuous exposure to the same general and substantial harmful conditions. It is a policy insuring liability for the property damage or bodily injury brought by the occurrence.


Occurrence In The Auto Insurance

Occurrence is often an uninterrupted and single cause resulting in a single or any property damages or bodily injuries.


The Policy of Per Occurrence

There’s always a limit for every occurrence. It is true when talking about liability insurance. It is about the max amount an insurer pays for the claims from such a single occurrence. It is with how many are injured and how many properties are damaged. It also is aligned with the number of claimants making a claim.


Occurrence Can Be Considered an Accident or Not

As you understand what does occurrence mean in insurance, learn as well that an accident can be unexpected. It’s a sudden event resulting in property damage or bodily injury. It can also be referred to as an occurrence. The definition of the occurrence includes repeated or continuous exposure to the same and general harmful conditions. So, to understand further, read the meaning of occurrence in a general liability policy.


Claims-made or occurrence, which seems a lot better?

The occurrence-based policy offers adequate coverage. It is provided you continue to renew them. It will require you to pay more than the amount to pay for a claims-made policy. The amount of coverage to buy under a claims-made policy should last longer. It is also while keeping the policy.


Basis of Occurrence Covered in the Liability Insurance

The occurrence basis of policy covers an insured for the liabilities relating to events occurring within the policy period. It is although the claim is filed right after the policy period’s expiration. So, if I were you, know what is the occurrence basis.  


Meaning of One Occurrence

One occurrence would mean any single claim. A policy that falls into this claim basis requires an insurance customer entitlement to a total indemnity limit. It is for each & every claim that is made. It is then also referred to as the “per occurrence”. It is also called “per claim”. 


Things That Can Trigger The Occurrence Form

That which can trigger the coverage of the occurrence policy is connected to the accident or the event date that gives way to the claim. The policy was enforced during that event because the loss should respond well with indemnity and defense. It is as per the occurrence contract.


Tail Coverage Still Needed For the Occurrence

It’s no longer needed for a tail for the occurrence policy. The policy itself guarantees coverage of what happened while still insured. Know that you’re already covered in this case.


Wrap Up!

Now you have learned what does occurrence mean in insurance. It just demands your attention, especially if you will file a claim. All other related information will also help you fully understand its meaning and its essence. So, the next time such an occurrence takes place, you already know what to do! For more insurance articles, check out what is commitment for title insurance and what is an installment fee insurance. Thank you for reading this article, until next time!

Leave a Comment