cause theory

One of the three theories typically used to determine the number of "occurrences" under an occurrence-based liability policy that looks to the underlying root "cause" of the injuries or damages. Under this theory, the singular underlying cause is considered a single occurrence regardless of the number of claimants. For example, if the root cause of injuries to multiple claimants was the company's manufacture of a defective product, coverage would be restricted to a single occurrence. The other two tests typically used to determine the number of occurrences are the triggering event and effect theories.