What does "per occurrence" mean in a liability policy?

In a liability policy, "per occurrence" specifically denotes the limit on the amount an insurer will pay for claims that arise from a single event or incident. This means that if a particular event leads to multiple claims, the insurer will only pay up to the specified limit for that singular occurrence, rather than applying that limit to each claim individually.

This is particularly important for policyholders as it helps to define the scope of coverage they have for incidents that may result in more than one claim, ensuring they understand the maximum liability coverage available for each event. It allows both the insurer and the insured to clarify the risks and financial protections provided under the policy for specific events, rather than distributing the financial cap across multiple claims over time or across different incidents.