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💰 '''Per-occurrence deductible''' is the fixed dollar amount an [[Definition:Insured | insured]] must absorb for each covered [[Definition:Occurrence | occurrence]] before the [[Definition:Insurance carrier | insurance carrier's]] payment obligation begins. Unlike an [[Definition:Annual aggregate deductible | annual aggregate deductible]], which accumulates losses over a policy period, the per-occurrence deductible resets with every qualifying event — meaning each hurricane, fire, or liability incident carries its own retention. This structure is standard across [[Definition:Commercial property insurance | commercial property]], [[Definition:General liability insurance | general liability]], and many [[Definition:Casualty insurance | casualty]] lines.

🔄 In practice, once a covered occurrence generates a loss, the insured pays the deductible amount first, and the carrier covers eligible costs above that threshold up to the applicable [[Definition:Policy limit | policy limit]]. If a windstorm damages three buildings owned by the same insured and those damages stem from a single weather event, one per-occurrence deductible typically applies to the combined loss rather than three separate deductibles — though the precise result depends on how the [[Definition:Policy | policy]] defines "occurrence." Disputes over whether multiple losses constitute one or more occurrences are among the most litigated issues in insurance coverage law, because the answer determines how many deductibles the insured must pay and how many limits the carrier must make available.

🎯 For [[Definition:Underwriter | underwriters]], the per-occurrence deductible is a powerful tool for aligning the insured's skin-in-the-game with the carrier's risk appetite. A higher deductible reduces [[Definition:Premium | premium]] and filters out smaller losses that are expensive to administer, while a lower deductible shifts more first-dollar exposure to the insurer. [[Definition:Broker | Brokers]] often model deductible trade-offs alongside [[Definition:Self-insured retention (SIR) | self-insured retention]] options to help clients optimize their [[Definition:Total cost of risk (TCOR) | total cost of risk]]. In [[Definition:Reinsurance | reinsurance]] programs, the concept carries over — [[Definition:Cedent | cedents]] retain a per-occurrence amount before their [[Definition:Excess of loss reinsurance | excess-of-loss]] cover responds, making this structure foundational to how risk is layered across the market.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Deductible]]
* [[Definition:Self-insured retention (SIR)]]
* [[Definition:Occurrence]]
* [[Definition:Annual aggregate deductible]]
* [[Definition:Retention]]
* [[Definition:Excess of loss reinsurance]]
{{Div col end}}

Definition:Per-occurrence deductible - Revision history

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