Liability · Insurance Term
Each Occurrence Limit (Per Occurrence Limit)
Definition
The each occurrence limit is the most a liability policy will pay for all damages from a single accident or event. That cap holds no matter how many people are hurt or how many claims result. A common amount on general liability policies is $1 million, beneath a larger aggregate limit for the policy year.
In Plain English
An occurrence usually means an accident, including repeated exposure to the same harmful conditions. If one fire injures five people, all five claims share a single each occurrence limit. Smaller separate limits, such as medical payments or damage to rented premises, have their own caps.
Payments under the each occurrence limit also count against the general aggregate limit, the most the policy pays for all occurrences in the policy year. A common structure is $1 million per occurrence and $2 million aggregate. Once either limit is reached, coverage for that event or that year is used up.
Lenders, tenants and franchise agreements often require specific occurrence limits on your commercial general liability policy. Many owners add umbrella insurance to raise the amount available for one severe claim.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical and simplified: A stairway collapses at an apartment complex, injuring three residents, and their claims total $1.6 million. With a $1 million each occurrence limit, the general liability policy pays up to $1 million. An umbrella, if the owner has one, may pay the remaining $600,000.
What to Watch For
- Compare your occurrence limit with what leases, loans and contracts require.
- Remember that defense costs are usually outside this limit on standard general liability forms, but not on every policy.
- Ask whether your umbrella sits directly above the occurrence limit with no gap.
- Think about the worst realistic single event at your property, such as a fire at an apartment building, when choosing limits.
Common Questions
Is $1 million per occurrence enough?
It depends on your property, your contracts and how many people could be hurt in one event. Many owners of apartments, hotels and retail centers add umbrella coverage, and lenders often set minimums.
What's the difference between per occurrence and aggregate?
The per occurrence limit caps what is paid for one event. The aggregate caps the total for all events in the policy year.
Last updated October 14, 2026 · Primesure editorial team · How We Write