What does an occurrence refer to in risk terminology?

In risk terminology, an occurrence refers to an accident or event that takes place over a period of time. This concept indicates that an occurrence may not be an isolated incident, but instead can span multiple instances or ongoing conditions that lead to damages or losses.

For example, in insurance, an occurrence might involve a series of events resulting from a single cause, such as a gradual environmental contamination caused by a leaking tank. This understanding is vital for assessing risks and determining coverage because it affects how claims are evaluated.

The other options do not fully capture the essence of what constitutes an occurrence. Some describe incidents with specific timeframes or limit their scope to singular events, which does not align with the broader and more continuous nature of occurrences in risk management. Thus, the definition embracing an event happening over a period is the most accurate and applicable in the context of risk terminology.