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Per-occurrence limit

The per-occurrence limit is the most your insurance company will pay for a single covered loss under the terms of your policy.

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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Business insurance glossary