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Insurance & Bondingaka: per-claim limitaka: occurrence limit

Per Occurrence Limit

In Plain English

The most your insurance pays for any single incident.

Definition

The per occurrence limit is the maximum amount an insurer will pay for any single covered event or claim under a liability policy, regardless of the number of claimants involved. This limit resets with each separate occurrence during the policy period, subject to the overall general aggregate limit. For example, a policy with a $1 million per occurrence limit and a $2 million aggregate will pay up to $1 million per event but no more than $2 million total in a policy year.

Example

A contractor's $1 million per-occurrence CGL limit covers a $750,000 settlement after a worker's fall injures a pedestrian at a downtown jobsite.

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