In insurance terminology, what does "Occurrence" refer to?

In insurance terminology, "Occurrence" specifically refers to an event that results in damage or injury and is covered by an insurance policy. This term is critical in various types of liability insurance, where it delineates what constitutes a single incident that can trigger a claim.

When an accident occurs, the insurance policy will define coverage based on how many occurrences arise. This is why the amount covered per accident—often referred to as the limit for each occurrence—is crucial. It represents the maximum amount the insurer will pay for a claim resulting from a specific event.

The other terms relate to different aspects of insurance policies. The total amount paid out each year pertains to the overall claims paid versus the insured limits. The aggregate sum refers to a combined total of all claims over a given period, typically found in liability policies where there are annual limits. The duration of coverage discusses the time span for which the policy is active, but does not relate directly to specific incidents or accidents. Understanding these definitions helps in navigating policy terms and conditions effectively.