What is the definition of an occurrence in insurance terms?

In insurance terminology, an occurrence is defined as an event that causes a loss, which can happen at a specific time and place or can occur over a period of time. This definition is broad enough to encompass various types of incidents, including accidents and other unexpected events that lead to a claim.

Understanding this definition is crucial because it establishes the basis for coverage under many types of insurance policies. For example, in liability insurance, an occurrence can be any incident that results in bodily injury or property damage, thus triggering the policy provisions.

The other options do not accurately capture the full scope of what constitutes an occurrence in the context of insurance. For instance, specifying that a loss occurs without damage to property would exclude many types of claims, and stating that a loss can always be avoided through preventive measures overlooks the unpredictable nature of certain risks. Similarly, suggesting that losses are always compensated by insurance does not account for the various exclusions and limitations that policies may have.