Per Occurrence Limit
What Is a Per Occurrence Limit?
A per occurrence limit is the maximum amount an insurance policy will pay for all covered claims resulting from a single accident or event.
Think of it as a “per claim” limit. It’s the most your policy will pay for a single incident until your aggregate limit is reached. This limit applies no matter how many people are injured, how much property is damaged, or how many claims result from that one incident.
Everything tied to that claim shares the same limit. Once the per occurrence limit is reached, the policy stops paying for the incident — even if additional related claims come in.
Per Occurrence vs Aggregate Limits: What’s the Difference?
Per occurrence limits are the most your policy will pay for a single claim, and aggregate limits are the most your policy will pay for all claims during the policy term.
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| Limit type | What it Means | Example with $1M / $2M |
|---|---|---|
|
Per occurrence limit |
Maximum amount the policy will pay for one event (one occurrence) |
Up to $1M for all covered injury/damage from a single accident |
|
Aggregate limit |
Maximum amount the policy will pay for all events during the policy term |
Up to $2M total for all covered occurrences in the policy year |
What Are Some Examples of Per Occurrence Limits?
Most insurance policies start with limits written as: $1,000,000 / $2,000,000. In this example, the limit would be $1 million per occurrence with a $2 million aggregate limit.
That means you could have up to $1 million for all covered injuries from a single accident, and up to $2 million for all covered accidents that took place during the policy year. For some, this may look like:
- Two claims of $1 million each
- Four claims of $500,000 each
Once you reach $2 million in total paid, your policy will not respond to claims until your current policy term ends and renews.
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