OCCURRENCE – An adverse contingent accident or event neither expected nor intended from the point of view of the insured. With regard to limits on occurrences, property catastrophe reinsurance agreements frequently define adverse events having a common cause and sometimes within a specified time frame.
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OCCURRENCE BASIS – In order for coverage to be provided, the incident creating a claim needs to occur within the policy period. It is not necessary for the claim to be reported during the insurers underwriting different types of liability risks to avoid ungainly multi-state licensing statutes. Must be owned by insureds.
OCCURRENCE POLICY – A policy covering claims that arise out of an event which took place during the policy period, regardless of when a claim is made.
OFFSET CLAUSE – A provision in reinsurance agreements which permits each party to net amounts due against those payable before making payment; especially important in the event of insolvency of one party which ceases to remit amounts due to the other.
OWNERS AND CONTRACTORS PROTECTIVE LIABILITY (OCIP) INSURANCE – A support attachment to commercial general liability insurance purchased by the owner of a business with premium paid by the owner. Typically covers contractors and subcontractors.
