How is “occurrence” defined in insurance terms?

In insurance terms, "occurrence" refers to a series of similar events or exposures that happen over a period of time and result in damage or liability. This definition is significant because it encompasses multiple events that may have the same cause or contribute to a similar type of loss, rather than being limited to a single incident.

For example, in liability insurance, an occurrence can include a series of related claims, such as ongoing pollution from a factory that affects the environment over an extended period. The distinction between a singular and a series of events helps insurance policies determine how coverage applies, especially in contexts where multiple claims can arise from ongoing issues.

This nuanced understanding of "occurrence" is essential for both policyholders and insurers, as it influences how claims are filed, processed, and covered. Recognizing that multiple incidents arise from the same underlying issue allows for a more comprehensive assessment of risk and the potential liabilities involved.