Which statement best describes the per occurrence limit in CGL?

• A. The per-occurrence limit applies to each individual claim, while the aggregate limit applies to all claims in the policy period.
• B. The per-occurrence limit applies to all claims within the same day only.
• C. There is no per-occurrence limit in CGL policies.
• D. The aggregate limit applies to each claim.

Answer: (A)

In a CGL policy, two limits control how much the insurer will pay: the per-occurrence limit and the aggregate limit. The per-occurrence limit is the maximum the insurer will pay for damages that result from a single event or incident, regardless of how many claims arise from that event. The aggregate limit is the total the insurer will pay for all covered claims during the policy period, no matter how many incidents occur.

This aligns with the statement because it describes the per-occurrence limit as applying to each individual occurrence, while the aggregate limit covers all claims within the policy period. For example, with a $1 million per-occurrence limit and a $2 million aggregate limit, a single incident can be paid up to $1 million, and all claims combined during the year can total up to $2 million.

The other options are not correct because they misstate how the limits work: the per-occurrence is not limited to a single day, nor does the aggregate limit apply to each individual claim, and there is typically a per-occurrence limit in a CGL policy.