What must be true for an occurrence to be valid for an insurance claim?

For an occurrence to be valid for an insurance claim, it is essential that the event is unexpected and causes a loss. This is a fundamental principle in insurance. Policies are designed to protect against unforeseen incidents that lead to damage or loss. If an event is expected or intentional, it typically falls outside the scope of coverage, as insurance is meant to provide a safety net for unanticipated risks.

Additionally, the requirement that an occurrence must result in a loss reinforces the purpose of insurance, which is to provide financial protection against losses that occur due to unexpected events. An event that causes no loss or damage cannot be the basis for a valid claim.

While it may be beneficial for certain types of incidents to be documented by authorities or occur within a specific policy period, these factors alone do not determine the validity of the occurrence for a claim; the core requirement remains that the incident is unexpected and has resulted in a discernible loss.