What does a Per Occurrence Deductible cover?

A Per Occurrence Deductible refers specifically to a deductible that is applied to the entire claim resulting from a single occurrence or event. This means that when an incident occurs, the insured must pay a specified amount out-of-pocket before the insurance company will cover the remaining costs associated with that occurrence. In this case, "occurrence" encompasses all damages or losses stemming from one single event.

Understanding this concept is vital because it affects how claims are processed and the financial responsibility of the insured after an incident. It’s distinct from other types of deductibles that might apply on a per item basis or across different policies. The nature of a Per Occurrence Deductible ensures that a policyholder is accountable for the initial costs of a specific event, and thereafter, the insurer assumes responsibility for the extent of the damages covered under the policy.