Category Legal Affairs

Insurance: occurrence and aggregation clauses

30 August 2022 Donald Dinnie, Norton Rose Fulbright
Donald Dinnie, Norton Rose Fulbright

Donald Dinnie, Norton Rose Fulbright

Occurrence clauses are commonly used to effect the application of deductibles on limits by aggregating claims.

They may operate in favour of the insured as to the amount of the deductible because it avoids deductibles being separately applied for each separate claim.  And may operate in favour of the insurer in regard to limits because it applies a gross limit to liability for all claims within the relevant occurrence.

Hour’s clauses typically apply to vary the effect of the occurrence definition by deeming multiple claims within a short specified or selected period to form part of one occurrence, often catastrophe events

Hour clauses generally also operate to reduce the application of deductibles but may result in applicable limits applying to an aggregate basket of claims.

Both are more commonly found in reinsurance policies.

First published by: Financial Institutions Legal Snapshot

Quick Polls


In navigating the dynamic landscape of financial intermediaries in 2024, which strategy do you believe is most crucial for success?


Prioritising client needs
Embracing technological advancements
Staying abreast of regulatory developments
All of the above
fanews magazine
FAnews February 2024 Get the latest issue of FAnews

This month's headlines

On the insurance industry’s radar in 2024
Insurers, risk managers unsure of AI’s judgement credentials
Is offshore the place to be in 2024?
Gap claims: erosion of medical benefits, soaring specialist fees
Investments and retirement… is conventional wisdom under threat?
Subscribe now