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. 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.