The per-occurrence limit is the maximum payable for one occurrence. Where multiple claimants are injured in a single event, they share that limit unless the policy provides a separate per-person limit.
It operates alongside the aggregate limit capping total payments for the policy period.
Alternative Names:
Occurrence Limit, Each Occurrence Limit
Why it Matters?
Whether an event constitutes one occurrence or several determines how many per-occurrence limits apply, which in multi-claimant losses is the difference between adequate and inadequate coverage. Where several claimants share a single limit, interpleader or a court-supervised allocation may be necessary, and the insurer faces bad faith exposure if it pays some claimants in full while leaving others unpaid.
Frequently Confused with
Related terms
Frequently asked questions
What happens when multiple claimants share one limit?
Is there a separate per-person limit?
