Part II The Bermuda Form in Detail, 7 Occurrence Definition

Subject(s):

Contract clauses and damages — Contracts and insurance

This chapter discusses the Bermuda Form occurrence definition. The occurrence definition has historically served a dual function. It describes the nature of the event or circumstance subject to coverage in general. It also determines and conclusively establishes the link between (1) the injury or damage from which the legal liability alleged against the insured arises, and (2) the specific policy and policy period that may respond and provide an indemnity to an insured in respect of its liability for that claim. In the Bermuda Forms, the occurrence definition is an amalgam or hybrid creature, combining principles of different approaches to describing the nature of the events or circumstances generally contemplated to be within the scope of coverage, and also because it addresses other subjects not traditionally addressed in such definitions.