What is generally meant by the term "occurrence" in liability?

The term "occurrence" in liability typically refers to an unexpected event that results in injury or damage. This definition underscores the nature of liability insurance, which is designed to respond to incidents that catch individuals or businesses off guard, potentially leading to legal claims for damages caused to others.

In the context of liability insurance, an occurrence is usually characterized by its unforeseen nature, which distinguishes it from the other options. For example, a planned event involving multiple parties may involve risk management and preparation to avoid liabilities, while a routine process or a contractual agreement would not fit the definition of occurrence, as they are premeditated activities rather than unexpected incidents. Therefore, the definition aligns perfectly with the context of liability insurance, emphasizing the importance of being covered for sudden events that can have significant legal ramifications.