Occurrence
An accident or continuous exposure to conditions that results in bodily injury or property damage during the policy period, triggering CGL coverage.
What It Is
An occurrence, as defined in the standard ISO CGL policy, is an accident, including continuous or repeated exposure to substantially the same general harmful conditions. The occurrence-based CGL policy covers bodily injury or property damage that takes place during the policy period, regardless of when the claim is actually made.
This means that if a covered event happens in 2024 but the claim is not filed until 2027, the 2024 policy responds — as long as the injury or damage occurred during that policy period. This is the fundamental distinction between occurrence and claims-made coverage triggers.
The determination of what constitutes a single occurrence versus multiple occurrences is critical for limits purposes. If a single event causes injury to multiple people, it is typically treated as one occurrence, and the per-occurrence limit applies once. Courts frequently litigate the number-of-occurrences question because it directly affects available policy limits.
Why It Matters for Brokers
Most standard CGL policies are written on an occurrence basis, and brokers must understand this trigger thoroughly. The occurrence form provides broader protection for long-tail exposures — such as construction defects, environmental contamination, or product failures — because the policy in effect when the injury or damage occurred responds, even years later. Brokers switching a client from occurrence to claims-made form must ensure there are no coverage gaps during the transition.
Real-World Example
A plumbing contractor installs a water line in a commercial building in March 2024. The policy period is January 1 to December 31, 2024, on an occurrence form. In November 2025, the pipe fails and causes $220,000 in water damage to the building. Even though the claim is made in 2025, the 2024 occurrence policy responds because the faulty installation — the occurrence — took place during the 2024 policy period. The contractor's $1M per occurrence limit covers the full $220,000 claim.
Common Mistakes
- 1Confusing the date of the claim with the date of the occurrence — on an occurrence policy, it is the date of injury or damage that determines which policy responds, not when the claim is filed.
- 2Not explaining to clients that occurrence policies provide tail coverage by design, eliminating the need for separate extended reporting period purchases.
- 3Failing to analyze whether a series of related events constitutes one occurrence or multiple occurrences for limits purposes.
How brokerageaudit.com Handles This
Policy Checker identifies the coverage trigger (occurrence vs. claims-made) on every CGL policy and displays it prominently in the policy summary. It flags any mid-term or renewal change from occurrence to claims-made as a critical coverage change requiring broker review. COI Manager accurately reflects the coverage trigger on all issued certificates.