F–DEFINITIONS
17. Occurrence
This term has different meanings under different Insuring Agreements.
a. When used in
Insuring Agreement A. 1., occurrence is one act, the total of multiple acts, or
a series of acts an employee commits during the policy period. The acts are not
required to be related but they may be. The employee may commit them alone or
in collusion with others.
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Examples:
Five
employees work together to skim money from their company’s accounts at
different times and in different ways. This is treated as a single
occurrence.
Five
employees who do not know of each other’s plans or what they are doing skim
money from their company’s accounts at different times and in different ways.
This is treated as five different occurrences.
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The policy period is the period on the declarations but modified in
Conditions E. 1. k. and E. 1. l. that explain how losses sustained during prior
insurance are handled.
b. When used in
Insuring Agreement A. 2., occurrence is one act, the total of multiple acts or
a series of acts an employee commits during the policy period that involve one
or more instruments. The acts are not required to be related but they may be.
The employee may commit them alone or in collusion with others. The policy
period is the period on the declarations but modified in Conditions E. 1. k.
and E. 1. l. that explain how losses sustained during prior insurance are
handled.
c. When used in any
other Insuring Agreement, occurrence is one act, the total of multiple acts, or
a series of acts committed during the policy period. The acts are not required
to be related but they may be. The act(s) may be committed by a person who acts
alone or in collusion with others. The act(s) are not required to have been
committed by a person.
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Example: A theft ring is
never identified but there is evidence that it has been at work in the
insured’s plant for five months and has stolen hundreds of different
products. This is a single occurrence.
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The policy period is the period on the declarations but modified in
Conditions E. 1. k. and E. 1. l. that explain how losses sustained during prior
insurance are handled.
CG 00 01 AND CG 00 02–COMMERCIAL GENERAL LIABILITY COVERAGE FORMS ANALYSIS
13. Occurrence
This is an accident. It includes continuous or repeated exposure to
essentially the same harmful conditions.
