Per-Occurrence Limit
What Is a Per-Occurrence Limit in Insurance?
The per-occurrence limit is the maximum amount your policy will pay for one covered claim. Think of it as a small cap of money within your larger pool of coverage. This limit is still subject to your policy’s rules, like exclusions or deductibles.
Why Occurrence Limits Matter for Beauty and Bodywork Professionals
The cost of a liability claim can add up quickly. When you know exactly how much you’re covered for, you get peace of mind to focus on helping clients look and feel their best!
- Contract compliance: Many landlords, studios, and event spaces require a minimum, such as $2 million per claim
- One event, multiple people: If two clients are injured in the same slip-and-fall, the claim still draws from one per-occurrence limit
- Realistic protection: Higher-risk services, higher foot traffic, or higher-value spaces may warrant higher limits
Per-Occurrence vs Aggregate Limit vs Sublimits: What’s the Difference?
A per-occurrence limit applies to a single claim, while an aggregate limit is the entire amount of coverage available for the policy period. A sublimit is a smaller cap for specific items in your policy.
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| Concept | Plain Meaning | Beauty and Bodywork Example | What to Watch |
|---|---|---|---|
|
Per-Occurrence Limit |
The maximum the policy pays for one incident |
Client trips over a cord and breaks a wrist; this limit caps what damages from this event are covered |
Venues usually list this requirement first on contracts |
|
Aggregate Limit |
The maximum the policy pays for all incidents during the policy term (like a policy year) |
You have three separate covered accidents in a year; the total payout only goes up to your aggregate limit |
Hitting the aggregate early leaves no limit for later claims |
|
Sublimits |
Smaller caps for specific items inside the policy |
Medical expenses sublimit covers up to $5,000 per person |
Sublimits don’t rise just because your per-occurrence limit is higher |
What Are Examples of Common Per-Occurrence Limits?
Your actual per-occurrence limits depend on your policy, but these are some common numbers you’ll see.
- General liability: Frequently $2 million per occurrence and $3 million aggregate
- Professional liability: Often $2 million per occurrence (same as general liability limit)
- Tools and supplies (inland marine): Coverage tiers, such as $5,000 or $10,000 per occurrence, with a small deductible
- Fire legal liability: Commonly a $300,000 sublimit
Some med-spa settings or luxe venues may request higher per-occurrence limits or additional endorsements. Match the contract to your policy.
Where to Find Your Limits on Your Insurance Documents
Double-check your coverage limits on:
- Declarations page:
- Find your per-occurrence limit under “general liability” coverage
- Nearby, check for your general aggregate, products-completed operations aggregate, medical expense limit, and fire legal liability limit
- Certificate of insurance (COI): Shows limits for quick proof, but the actual policy controls coverage
- Endorsements: Check for any wording that changes limits (e.g., venue-specific requirements or sublimit changes)
Related Terms
- Aggregate Limit
- Sublimit
- Declarations Page
- Certificate of Insurance (COI)
- Endorsement
- Coverage Details
- General Liability Insurance
- Professional Liability Insurance
- Medical Expenses Limit
