Occurrence Limit

The occurrence limit, also called the per-occurrence limit or each-occurrence limit, caps the insurer's total liability for any single event. For example, if a contractor causes a fire that damages multiple units in an apartment building, the per-occurrence limit is the maximum the policy will pay for all claims arising from that single fire, regardless of how many tenants are affected.

In COI compliance, the occurrence limit is often the most scrutinized coverage amount. Contractual insurance requirements typically specify minimum per-occurrence limits for general liability, often ranging from $1 million to $2 million for standard commercial operations.

Compliance teams should verify that the occurrence limit shown on certificates meets or exceeds the contractual minimum. When primary occurrence limits fall short, reviewing whether umbrella or excess coverage bridges the gap is essential for determining overall compliance status.