What does the term "per occurrence" refer to in liability insurance?

The term "per occurrence" in liability insurance refers specifically to the limits of liability coverage that apply to each individual event or incident that may lead to a claim. This means that for each separate occurrence, the insurer will pay up to the limit specified in the policy, regardless of the number of claimants involved in that occurrence.

For example, if a policy has a limit of $1 million "per occurrence," it indicates that in the event of a covered incident, such as a slip and fall accident on the insured property, the insurance company would cover up to $1 million for that single occurrence of liability, regardless of how many individuals were affected or how many claims arose from that same event.

Understanding this concept is crucial because it outlines how coverage applies to distinct claims rather than combining claims or limits across different incidents. The other terms listed, while relevant in the context of insurance policy limits, do not specifically define the "per occurrence" structure. For instance, "per person" would relate to the limits applied to individual claimants, "combined single limits" refers to a single limit that covers both bodily injury and property damage in one amount, and "split limits" denote separate limits for bodily injury and property damage, which are distinctly different concepts