What liability policy sublimit caps the total payments for all claims arising from a single accident?

• A. Per Occurrence
• B. Policy Aggregate
• C. Per Claim
• D. General Aggregate

Answer: (A)

The main idea is how liability policy limits apply to claims from incidents. The per occurrence limit is the cap on the total amount the insurer will pay for all claims that arise from a single accident. So, if one accident leads to multiple injuries or property damages, the sum of all payments for that accident cannot exceed this per-occurrence limit. This is different from the per-claim limit, which sets the maximum payment for any single claim, and from the aggregate or general aggregate, which cap the total payments for all claims across the entire policy period. Therefore, the limit that controls the total payout for one accident is the per-occurrence limit.