(1) In common usage: an unforeseen and unplanned event or
circumstances; or an unfortunate event resulting especially from carelessness
or ignorance (Webster's Dictionary).
In insurance parlance, a term that is included within the insuring agreement
of many types of liability insurance. In a few cases, the word
"accident" is a defined term within the policy. In most cases,
however, common law becomes the determinant of what is, or is not, an accident
for purposes of triggering coverage.
(2) In boiler and machinery (BM) insurance,
"accident" is defined within the policy to mean a sudden and
accidental equipment breakdown that causes damage to the equipment that
necessitates repair or replacement. BM coverage applies to loss or damage
resulting from an accident to a covered object.
(3) In liability insurance, particularly older forms, the
insuring agreements typically covered injuries or damages caused by an accident
that was not the result of a deliberated intended act (even if the intended act
caused an unexpected result). The term accident was undefined in such policies.
The coverage trigger in the insuring agreement of modern liability policies,
such as the commercial general liability (CGL) policy, applies to an
"occurrence," which is defined to mean an accident, including
continuous or repeated exposure to substantially the same general harmful
conditions.
Unlike most other modern liability policies, the commercial auto liability
insuring agreement continues to apply to injuries or damages caused by an
"accident." In this case, the policy includes a definition, of sorts,
of the term "accident"—that is, "[a]ccident" includes
continuous or repeated exposure to the same conditions resulting in
"bodily injury" or "property damage."
The personal auto policy's (PAP's) liability insuring agreement
states that the insurer will pay damages for bodily injury or property damage
for which any insured becomes legally responsible because of an auto accident.
In this type of policy, the term accident is used in its ordinary sense,
without including it as a defined term.