Leigh Insurance Agency of St Augustine Blog
An insurance policy's maximum payout for any claim is known as the "per-occurrence limit." Once your deductible has been met, the compensation amount will be calculated.
What is the Significance of a Per-Occurrence Limit?
Understanding your per-occurrence insurance limits is important as a company owner. You may use it to calculate your company's appropriate level of protection.
Claims that arise from one event at your organization are covered under a per-occurrence limit. In the event of many events occurring within the policy term, only the accumulated limitations will be used to settle the claims. The limitations you choose for your firm should reflect whether it is more likely to suffer a single tragedy or a series of less severe ones.
Picking the appropriate per-occurrence limit might also help you avoid unpleasant surprises after submitting a claim. Your exposure to risk as a company owner decreases in proportion to the size of your per-occurrence limit.
Per-Occurrence Insurance vs. Per-Claim Insurance
Per-occurrence insurance and per-claim insurance, often known as a claims-made policy, are the two primary types of commercial insurance. Time of coverage and premium are the primary distinctions between per-occurrence and per-claim plans.
A per-occurrence insurance policy assures coverage for occurrences within the policy's value and service. Even if you terminate your insurance policy after the period has expired, the insurer must still pay any claims that arose within the policy time. The per-occurrence policy is the equivalent of a life insurance policy.
Your company is only safeguarded by per-claim insurance if a claim is made while the policy is still valid. If you terminate your coverage during the policy period, you will not be compensated for any claims made. High levels of coverage offered by per-occurrence insurance plans translate into higher premiums.
Per-occurrence limits are the most important since they determine how much your insurance protects you. Understanding your coverage is important, but having a knowledgeable insurance agent who can guide you through these discussions is even more important.
At Leigh Insurance Agency, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get insurance that fits your needs. You can get more information about our products and services by calling our agency at (904) 826-0799. Get your free quote today by CLICKING HERE. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!