Per Occurrence Limit
The per occurrence limit is the maximum amount an insurance policy will pay for a single covered incident, regardless of how many separate claims or claimants arise from that one event. The Allen Thomas Group sets per occurrence limits based on the realistic worst-case scenario a business could face from one bad incident, not just an industry-standard default.
How It Works
If a fire at a business causes $300,000 in damage to a neighboring property and a policy has a $500,000 per occurrence limit, the full $300,000 would be covered (assuming no other sublimits apply). If the damage were $600,000 instead, the policy would pay $500,000 and the business would owe the remaining $100,000 out of pocket.
Per Occurrence Limit vs. Aggregate Limit
| Limit Type | What It Caps |
|---|---|
| Per occurrence limit | Maximum payout for any single incident |
| Aggregate limit | Maximum total payout across all claims during the policy period |
A policy can hit its aggregate limit well before the term ends if it has several large per occurrence claims, after which no further claims are paid that period regardless of the per occurrence limit remaining.
Why This Matters
Businesses with high-severity exposure, like construction, manufacturing, or hospitality with alcohol service, should size their per occurrence limit around their largest plausible single loss, not an average one. Landlords and clients in signed contracts frequently specify a minimum per occurrence limit a business must carry, so this number can affect eligibility for jobs and leases, not just claim payouts.
How The Allen Thomas Group Can Help You
We'll help you understand exactly how per occurrence limit affects your coverage and cost, then shop your policy across 15+ A-rated carriers to find the right fit.
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