What characterizes an 'occurrence' in insurance?

In the context of insurance, an "occurrence" is defined as an accident that results in damage or injury, which may also include continuous exposure to harmful conditions over a period of time. This definition is significant because it encompasses not only sudden, singular events—like an accident—but also scenarios where ongoing exposure leads to damage or harm, such as long-term environmental issues.

This characteristic is particularly vital for understanding liability insurance, as it helps establish coverage for incidents where the harm may not be immediately apparent or may evolve over time. For instance, a policy may cover a situation where a property has been exposed to harmful substances, resulting in gradual degradation or health issues, thereby recognizing that the underlying cause of the claim is continuous in nature rather than the result of one isolated incident.

Events that can be predicted, crimes that result in claims, or unanticipated natural disasters do not fully capture the insurance industry's broader understanding of what constitutes an occurrence. Hence, the definition hinges on accidents and the resultant consequences of ongoing harmful exposure, making it essential for insurers and policyholders to grasp this distinction for effective risk management and claims processes.