per-occurrence basis

Liability insurance protects individuals and businesses from claims arising from negligence. It covers sums an insured becomes legally obligated to pay due to bodily injury, wrongful death, or property damage. Common types include automobile, business, professional, and personal liability. Policies often include defense costs, even for false claims.

Limits of liability can be set on a per-occurrence or claims-made basis. A per-occurrence policy offers more comprehensive coverage, covering negligent acts that occurred within the policy period, regardless of when the claim is filed. A claims-made policy covers claims presented during the policy period, with restrictions on prior events. Business liability insurance can cover a wide range of risks, including those from faulty products or contractual agreements. Personal liability is often included in homeowner's policies.