What does a per occurrence liability limit specify?

What does a per occurrence liability limit specify?

• A. The maximum amount the insurer will pay for all claims resulting from a single occurrence
• B. The maximum amount the insurer will pay to each injured person
• C. The maximum annual premium for the policy
• D. The maximum payout for property damage per occurrence

Answer: (A)

Per occurrence liability limit is the maximum the insurer will pay for all claims arising from a single occurrence. This means that if one accident causes multiple injuries and damages, the total payouts for that event cannot exceed this limit, even if there are many claimants. Some policies may have separate limits for bodily injury per person and property damage per occurrence, or a combined limit for all liability arising from the same event. The other options describe different concepts: a per-person limit caps payments to any one injured person, a premium amount isn’t the payout limit, and a property-damage-per-occurrence limit only applies to property damage, not the total liability from the entire event.

Per occurrence liability limit is the maximum the insurer will pay for all claims arising from a single occurrence. This means that if one accident causes multiple injuries and damages, the total payouts for that event cannot exceed this limit, even if there are many claimants. Some policies may have separate limits for bodily injury per person and property damage per occurrence, or a combined limit for all liability arising from the same event. The other options describe different concepts: a per-person limit caps payments to any one injured person, a premium amount isn’t the payout limit, and a property-damage-per-occurrence limit only applies to property damage, not the total liability from the entire event.