A per occurrence limit is the most an insurer will pay for all claims arising from a single occurrence. IRMI defines it as "the maximum amount the insurer will pay for all claims resulting from a single occurrence, no matter how many people are injured."
Why It Matters for Snow Contractors
When a contract says "$2 million per occurrence" or "$5 million per occurrence," it is talking about this limit. It is usually the headline number on your general liability policy and on your certificate of insurance.
A single icy entrance can injure more than one person. The per occurrence limit is shared among all of them, so a client with busy sites may set a higher minimum. Published tenders we found ranged from $2,000,000 to $5,000,000 in general liability.
The per occurrence limit works alongside the aggregate limit, which caps total payments over the policy period.
Example
A policy has a $2 million per occurrence limit and a $4 million aggregate. An ice patch at a store entrance causes two falls from the same occurrence. Both claims draw on the same $2 million per occurrence limit, and the payments also count toward the $4 million aggregate for the year.
Related Terms and Guides
General information only, not insurance or legal advice. Policy wordings differ; a licensed broker can explain how your own policy and contracts treat this.
Further reading: Insurance Bureau of Canada: Insurance glossary
SnowPlowInsurance.ca is an independent referral service, not an insurance company or broker. We connect you with licensed brokers who provide quotes and advice. How this site works.
Frequently Asked Questions
What counts as one occurrence?
It depends on the policy definition and the facts. A broker can explain how your policy defines it.
Can an umbrella policy increase my per occurrence limit?
An umbrella policy sits over primary policies and adds limits. Whether that meets a contract depends on its wording.