What defines an 'occurrence' in insurance terms?

An 'occurrence' in insurance terms is defined as an event that causes damage. This is a foundational concept in many types of insurance policies, particularly liability insurance. An occurrence refers to an event that triggers the coverage provided by the insurance policy, resulting in bodily injury or property damage to a third party.

Understanding 'occurrence' is crucial because it sets the framework for when an insurer is obligated to pay a claim. Each occurrence typically includes single, distinct incidents, such as a car accident, a fire, or another instance leading to a loss. Policies often detail various occurrences and how they are treated under the coverage, affecting limits and deductibles.

While a series of unfortunate events might seem plausible, it lacks the specificity required to meet the insurance definition since individual occurrences are usually counted separately. Driving behavior or moral actions do not constitute occurrences, as they do not directly refer to a specific damaging event that would result in a claim against an insurance policy. Thus, defining an occurrence strictly through the lens of event-driven causation provides clarity and aligns with standard insurance practices.