per occurrence limitation of liability provision
A nonstandard commercial property insurance provision that essentially converts
blanket limits to specific, per location limits. This provision establishes
that the most the insured can collect for a commercial property loss at a given
location is the amount reported for that location on the insured's statement
of values. It is sometimes used in combination with another nonstandard commercial
property insurance provision: a margin clause. A margin clause softens the negative
impact of the per occurrence limitation of liability provision by stipulating
that the most the insured can collect for a loss at a given location is a specified
percentage greater than 100 percent (such as 110 or 125 percent) of the values
reported for that location.
Links for IRMI Online Subscribers Only:
TRR 8/2006