Number of Occurrences

Number of Occurrences

Number of Occurrences

When a series of injuries stems from related conduct, courts must decide whether they constitute one occurrence or many. The answer sets how many per-occurrence limits are available and how many deductibles or retentions the insured must fund.

Most jurisdictions apply the cause test, asking whether there was one proximate cause or several. A minority use the effect test, counting each injury or claimant separately.

Alternative Names:

Occurrence Counting, One Occurrence or Many

Why it Matters?

Counting drives available limits in both directions. An insured facing multiple claimants generally wants many occurrences to access multiple per-occurrence limits, but each occurrence carries its own retention, so with a large SIR the calculus reverses. In products, abuse, and continuous exposure claims, this single determination frequently decides whether the tower is adequate.

Frequently asked questions

Is each injured claimant a separate occurrence?

Is each injured claimant a separate occurrence?

Usually not under the cause test, which most states follow. If a single proximate cause produced all the injuries, courts commonly treat it as one occurrence regardless of the number of claimants.

Does the insured always want more occurrences?

Does the insured always want more occurrences?

No. Each occurrence carries its own deductible or self-insured retention, so where the retention is large the insured may prefer a single occurrence.