What is an occurrence in the context of insurance?

In the context of insurance, an occurrence refers to a loss or event that happens at a specific time and location, usually leading to a claim under an insurance policy. This definition aligns with the understanding that occurrences are distinct incidents that can be documented and are often associated with the triggering of coverage, making it crucial for both the insurer and the insured to establish the parameters of what constitutes an occurrence for claims purposes.

While a random event that can lead to losses captures the unpredictability of occurrences, it lacks the specificity of timing and location that is essential in insurance terms. Similarly, the idea of a series of unrelated events causing damage deviates from the notion of an occurrence being a specific incident rather than a collection of incidents. Lastly, a contractual agreement between the insurer and insured describes the relationship and obligations between the parties but does not define what an occurrence is in the context of claims and policy coverage. Therefore, defining an occurrence as a loss that happens at a specific time and place encapsulates the concept effectively in the realm of insurance.