The maximum amount an insurer will pay for a single claim or event. Each separate incident is subject to this limit regardless of how many claims have already been filed during the policy period. Per-occurrence limits are distinct from aggregate limits.
Related Terms
Claim
A formal request made by a policyholder to an insurance company for payment or reimbursement for a covered loss or policy event. Filing a claim triggers the insurer to investigate the loss, assess damages, and determine what amount is payable under the policy.
Coverage Limit
The maximum amount an insurance company will pay for a covered loss under a policy. Limits can apply per occurrence, per person, or as an aggregate over the policy period. Choosing the right coverage limit is one of the most important decisions when buying insurance.
Aggregate Limit
The maximum total amount an insurer will pay for all covered claims during a policy period, typically one year. Once the aggregate limit is reached, the insurer will not pay any additional claims regardless of individual per-occurrence limits remaining.