What is a per-occurrence limit?
Many small business insurance policies limit the amount of money they’ll pay for a single claim or incident. This amount or cap is known as a per-occurrence limit.
Policies with per-occurrence limits include professional liability insurance (also known as errors and omissions insurance) and general liability insurance.
Why are per-occurrence limits necessary?
Per-occurrence limits are necessary for two reasons:
- They give you flexibility in tailoring the right amount of protection for your business's risk exposures.
- They help insurers limit their total liabilities and claims expenses so they can remain financially strong.
How are per-occurrence limits different than aggregate limits?
Aggregate limits are the maximum amount of money an insurer will pay you for multiple claims during the policy period.
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