Per-Occurrence Limit
The per-occurrence limit is the maximum amount an insurance policy will pay for a single covered event or claim, regardless of how many claimants or damaged items are involved.
In liability insurance, the per-occurrence limit defines the maximum payout for any single event that triggers a claim. If a slip-and-fall incident at an apartment property results in a $1,200,000 judgment but the policy has a $1,000,000 per-occurrence limit, the insurer pays $1,000,000 and the property owner is responsible for the remaining $200,000 unless umbrella or excess coverage is in place.
The per-occurrence limit applies to all damages and defense costs arising from a single incident, regardless of how many people are injured or how many claims are filed. In a scenario where a balcony collapse injures multiple people, all of the resulting claims would be subject to the single per-occurrence limit, which could be quickly exhausted.
For apartment properties, the standard per-occurrence limit for general liability is typically $1,000,000. (Source: ISO Form CG 00 01, Commercial General Liability) Properties with significant amenities, high foot traffic, or elevated risk profiles should consider whether this limit is adequate or whether higher underlying limits or umbrella coverage is warranted. The per-occurrence limit works in conjunction with the aggregate limit, which caps the total payouts for all claims during the policy period.