How do "accident" and "occurrence" differ in insurance terminology?

In insurance terminology, the distinction between "accident" and "occurrence" is significant. An accident is typically understood as a sudden, unexpected event that results in damage or injury. This means that accidents are often brief and happen at a specific moment in time, leading to immediate consequences.

On the other hand, an occurrence encompasses a broader range of events, including not only sudden accidents but also situations that may develop over a period due to continuous exposure to risk. For instance, long-term exposure to toxins can lead to health issues, classifying the situation as an occurrence even though the specific illness may manifest slowly over time.

This differentiation is crucial for insurance policies, as the definitions can determine the scope of coverage and the handling of claims. Understanding that an accident is a singular and sudden event while an occurrence can include a series of events or long-term exposure helps clarify how various claims may be processed under different types of insurance policies.