What does the term "occurrence" refer to in insurance?

The term "occurrence" in insurance refers to a broad concept that encompasses not only a single incident resulting in harm but also ongoing exposure to risks over time. This definition is key because it recognizes that certain circumstances may lead to cumulative effects or repeated exposures that can cause damage, even if no singular event can be pinpointed.

For instance, in liability insurance, an occurrence can include a series of related incidents that lead to a claim, expanding the scope of coverage beyond just one isolated event. This approach allows for a more comprehensive understanding of potential liabilities to which an insured party may be exposed and ensures that they are protected against both immediate and cumulative risks.

The other choices tend to limit the understanding of "occurrence" to narrower definitions, which may not capture the full extent of how risks can manifest in insurance scenarios.