An occurrence is an accident, including continuous or repeated exposure to substantially the same general harmful conditions. That single sentence from the general liability policy decides whether a loss is covered at all, how many limits apply to it, and which policy year pays when damage develops slowly over time.
You will see the word in three places: the insuring agreement, which covers injury or damage caused by an occurrence, the each occurrence limit on your declarations, and the label on your policy type.
Occurrence
An accident, including continuous or repeated exposure to substantially the same general harmful conditions, that results in bodily injury or property damage during the policy period.
How does the occurrence definition affect coverage?
The definition is deliberately wider than the plain word accident. A dropped pallet is an occurrence, but so is a slow pipe leak that soaks a neighboring suite for eight months, because continuous exposure to the same harmful conditions counts.
What the definition filters out is intent. Injury or damage expected or intended from the standpoint of the insured is excluded, so coverage responds to your negligence, not your business plan.
The definition also does counting work. The each occurrence limit on CG 00 01 is the most the insurer pays for any one occurrence, and every payment then reduces the applicable aggregate limit. When one event injures forty people, whether that is one occurrence or forty determines whether one limit or forty limits apply, and adjusters ask early about the cause because a single proximate cause generally means a single occurrence.
What is an occurrence policy versus a claims-made policy?
An occurrence policy covers injury or damage that happens during the policy period, no matter when the claim is filed. The policy you carried in 2021 answers a 2026 lawsuit about a 2021 injury, even though it expired years ago.
A claims-made policy instead covers claims first made during the policy period, which is why professional liability and directors and officers forms need retroactive dates and an extended reporting period when coverage ends. Standard commercial general liability is written on the occurrence form, so most business owners never choose between the two. If you buy specialty lines, the trigger differences are worth twenty minutes of your attention, and the full comparison is in our guide to occurrence versus claims-made policies.
Frequently asked questions
Is an occurrence the same as a claim?
No. The occurrence is the accident or exposure that causes injury or damage. The claim is the demand for money that follows, sometimes years later. Occurrence policies key coverage to when the harm happened, not when the claim shows up.
Does an occurrence have to be sudden?
No. The definition expressly includes continuous or repeated exposure to substantially the same general harmful conditions, so gradual damage like a long running leak or fume exposure can qualify, as long as the insured did not expect or intend the harm.
What is the each occurrence limit?
It is the most your policy pays for bodily injury and property damage from any one occurrence, shown on the declarations. Payments under it also reduce your general aggregate or products-completed operations aggregate for the policy term.
Can multiple injuries be one occurrence?
Often yes. Injuries traceable to a single proximate cause, like one contaminated food batch, are generally treated as one occurrence sharing one limit. Courts differ at the edges, which is why the count is fought over in large losses.
This definition is for educational purposes. Your policy's specific terms, conditions, and endorsements control. Talk to a licensed broker about your actual exposures.