Per-Occurrence Limit
The maximum amount an insurance policy will pay for a single covered incident or claim
Detailed Explanation
This limit caps the insurer's liability for any one event, regardless of how many people are injured or how much property is damaged in that particular incident.
Practical Example
A business has a general liability policy with a $1 million per-occurrence limit. If a customer slips and falls, sustaining injuries that result in $800,000 in damages, the policy would cover the entire amount (minus any deductible). However, if damages exceeded $1 million, the business would be responsible for the difference.
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