Definition: In the context of insurance, an ‘occurrence’ refers to an event or accident which causes bodily injury or property damage during the policy period that was neither expected nor intended from the standpoint of the insured.
Detailed Explanation
- Accident: This refers to an unintended and unforeseen incident.
- Injurious Exposure to Conditions: This involves exposure to harmful conditions which leads to an accident, causing injury or damage.
- Result: The outcome must be demonstrable bodily injury or property damage.
- Policy Period: The time frame during which the insurance policy is effective and covers the risks specified.
- Neither Expected nor Intended: The resultant injury or damage should not have been anticipated or planned by the insured.
Legal and Regulatory References
- CGL Policy Definitions: General liability insurance policies detail occurrences to clarify what events are considered covered incidents.
- Local and State Regulations: Depending on jurisdiction, the definitions and implications of an occurrence can vary; always refer to local governmental and legal resources.
- Insurance Contracts Act: The specifics might also correlate with stipulations laid out in national laws, such as the Insurance Contracts Act where applicable.
What Counts as an Occurrence?
For insurance purposes, each separate incident that fits the criteria of an occurrence might be treated individually based on the specifics of the policy agreement. Understanding the definition helps in evaluating what incidents are covered under a policy, especially in liability insurance.
Practical Examples
- Example 1: A roofing contractor accidentally drops a tool off the roof, damaging a parked car beneath. This unexpected incident would be considered an occurrence under a typical general liability insurance policy.
- Example 2: During painting, accidental overspray damages nearby property. Since the damage was unintended and during the covered policy period, it is an occurrence.
In summary, the concept of ‘occurrence’ is fundamental in determining how an insurance policy responds to claims of bodily injury or property damage. It is crucial for both insurers and insured parties to understand this definition well to manage expectations and policy responsibilities.
