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CHEF INSURANCE

ARTICLE - WHAT IS AN OCCURRENCE IN TERMS OF AN INSURANCE CLAIM?


BY: CHEF SONIA, SUCCESS MANAGER AT THE CHEF ALLIANCE 

DATE: AUGUST 2020



Commercial General Liability Insurance (CGL) is purchased by businesses to protect them from lawsuits.  These can range from claims of property damage to allegations of bodily injury, such as food poisoning, or foreign bodies (e.g. grit casing a broken tooth) in food.



WHAT IS AN OCCURRENCE?


An occurrence includes a single event as well as harm that is repeated or continues as a result of that event.



WHAT IS AN ACCIDENT?


An accident is an unexpected or unseen event that happens without intention or planning.  CGL policies cover accidents or occurrences that are unintentional.  They do not include injury or damage that is intentional, expected or planned. In some instances, an intentional act may have unexpected consequences and may be covered.



EACH OCCURRENCE LIMITS


This is the most that the insurer will pay out for damage or bodily injury arising out of one occurrence.



CONTINUOUS INJURY


This means an event may be considered a single occurrence even if several people are injured or there are more than one claim.  Consider a scenario where a catering cook mistakenly reaches for a salad dressing for a family-style salad on a buffet table, not realizing that it contains nuts.  Several party-goers have an allergic reaction.  Are all the claims one occurrence or are they each separate occurrences?  It really depends on your local laws.  Some may consider it as one occurrence since they all emanated from one cause or event; other jurisdictions will take each claim as a separate occurrence.




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The Chef Alliance is a leading foodservice association in Canada offering Chefs and Entrepreneurs a place to grow their business.  They can benefit from liability insurance to protect their clients and finances, peer support strengthen their business, discounts to lower their business costs, market their services and increase profits.  This leaves them time to concentrate on what they do best - cook great food!