An event is a unique event that results in a single insured event. Many companies protect themselves from lawsuits based on allegations of bodily injury or property damage by purchasing commercial general liability insurance. Commercial liability insurance covers damage for which an insured company is required by law to pay for bodily injury or property damage caused by an event. Stephen`s misfortune continues: he owns three bikes worth $2,000 each. His home insurance has a coverage limit of $5,000 for bicycles. In other words, if his bikes are stolen or damaged, his insurance company will pay a maximum of $5,000 per event. ISO`s general responsibility policy explains the meaning of the word occurrence in the Policy Definitions section. This term means the following: occur entry 1 + -ence, perhaps according to the Middle French event “circumstance” Events are important with regard to deductibles and coverage limits. Deductibles are the amount that the home insurance customer pays in a claim before their insurer pays the rest. Deductibles apply per event. So, in Stephen`s case earlier, he will pay the deductible for each of his two insurance claims because they are two separate events. If his three bikes were lost in the same case, it would be $6,000 in a single event, so his billing would be limited to the $5,000 limit of the policy.
As mentioned above, an event involves continuous or repeated exposure to essentially the same general adverse conditions. This means that an event can be considered a single event, even if it results in multiple injuries or claims. If an event occurs that results in a liability claim (dog bite, slip and fall, accidental lighting of your neighbor`s house, etc.), everything that results from that event is related to the same event. An event includes a single event and any damage that repeats or continues as a result of that event. In standard liability insurance, the limit for each event is the maximum the insurer pays for damage under coverage A and medical expenses under coverage C due to bodily injury or property damage resulting from an event. The significance of the event affects the level of coverage available under the Directive. While Stephen`s home insurance has a coverage limit of $5,000 for bicycles, this limit only applies per event. Since each of his three bikes was lost or damaged in another incident, his claims do not reach the limit.
Home insurance claims are not cumulative; After each claim, policy limits and deductibles are reset. However, the storm and fire have nothing to do with each other, so the insurance company will treat them as two separate events. Stephen will eventually file two insurance claims, and his insurer will adjust each claim independently of the other. Stephen will likely also have to pay a deductible for each claim. The claim process for these two events is no different if the losses had occurred 6 months apart: they are not related, so they are two separate events. In some states, courts determine the number of incidents by considering the number of injuries or claims, rather than the cause. In these states, each claim or violation is considered a separate event. Our previous examples have dealt with property damage, but also in the case of liability claims, incidents occur. They work in the same way.
Although an accident is not defined in the policy, this word usually means a random, unexpected or unforeseen event. It is a circumstance that occurs without intention or conception. Many events that lead to liability claims are clearly random. Here are some examples: This is an extreme example, of course, but it shows what an event in insurance is. Both events occurred on the same day, so Stephen will report both to his insurance company at the same time. In the Fantastic Farm Supplies example described above, eight claims arose from an employee`s act of negligence. Depending on the state in which Fantastic is located, claims may be considered one event or eight separate deposits. If claims are treated as a single event, Fantastic`s liability insurer will not pay more than the limit for each event for the eight claims combined.
If claims are treated as separate events, individual events are individually subject to the limit for each event. This includes everything from legal fees to defend yourself in court, legal damages, reimbursement of lost wages while you go to court, etc. All of this is added up by event, and your insurer will pay for such things up to your policy`s liability coverage limit. In home insurance, burglaries, fires, burst pipes or even a dog bite that leads to a liability claim are common. Any incident for which an owner might make an insurance claim is an event. Do the eight claims result from a single event or do all claims result from a separate event? The answer depends on the condition. In majority government, courts determine the number of incidents based on a “cause” theory, meaning they investigate the underlying cause of injuries or claims. In the scenario described above, all claims resulted from an act of negligence (the herbicide in the fertilizer tank). According to the root cause theory, they were all the result of a single event. A cause of injury, damage or destruction of property belonging to a third party. Insurance policies state that losses are classified as under a single event for a common reason.