A single accident can generate multiple claims from different people. A per occurrence limit is the maximum amount an insurer will pay for all bodily injury and property damage arising from one occurrence, regardless of the number of claimants or claims.

The definition of “occurrence” is critical—especially whether related incidents are aggregated into one occurrence or treated as separate ones. In liability policies the per occurrence limit often sits alongside an aggregate limit that caps total payments for the policy period.

Choosing an adequate per occurrence limit requires estimating the plausible severity of a single incident, including potential for multiple injuries. Umbrella policies provide additional per occurrence capacity above primary limits. Disputes over the number of occurrences can dramatically change the available coverage.

• Maximum payable for all claims from one occurrence
• Applies regardless of number of claimants
• Works with aggregate limits in many policies
• Definition of occurrence affects available limits