What is the difference between an accident and an occurrence?

The distinction between an accident and an occurrence is pivotal in understanding insurance terminology and coverage. An accident is typically considered a sudden and unexpected event that causes harm or damage, such as a car crash or a slip and fall incident. In contrast, the term occurrence encompasses a broader range of events that can cause injury or property damage, including both sudden accidents and long-term exposure to certain risks. For example, an occurrence might refer to ongoing exposure to a hazardous substance that leads to health issues over time.

This nuanced differentiation is crucial in insurance policies, where coverage might extend to long-term damages or continual exposure situations, unlike the more limited scope that defines an accident. Understanding this distinction helps in determining the scope of coverage and potential claims under various insurance policies.