How is 'accident' defined in insurance terms?

In insurance terminology, an "accident" is characterized as a sudden and unforeseen event that results in injury or damage. This definition is fundamental in the context of insurance, as it encompasses incidents that occur unexpectedly, leading to losses that policyholders might seek to cover under their insurance policies. The emphasis on "sudden" and "unforeseen" highlights that the event was not anticipated, which is critical for establishing the validity of claims.

When an accident is identified this way, it aligns with how most personal lines insurance products, like auto or homeowners insurance, approach coverage. Coverage typically applies to unexpected events, such as an unpredicted car crash or a sudden fire in a home, distinguishing "accidents" from planned activities or intentional acts like negligence or premeditated actions.

This understanding is crucial for both insurers and policyholders, as it frames the circumstances under which insurance claims can be filed and processed. The other definitions do not encapsulate the essence of an accident as understood in the insurance context; they either imply intent or planning, which is contrary to the nature of what constitutes an accident in this field.