Whether a claim involves an auto policy or a general liability policy, a question can arise about the number of occurrences. Depending on the facts and the policy language, the number of occurrences can have a significant effect on the insurer's exposure.

Most courts use a "cause" analysis in determining the number of occurrences. When a negligent act is committed and damage or injury results from one proximate cause and an uninterrupted chain of events, it's fairly simple to conclude that there was one occurrence. But the analysis becomes more difficult when, for example, a negligently caused condition results in damage or injury at different times or places.

Consider a situation in which 100 people were injured over the course of four years as a result of exposure to a defective product manufactured by the insured. Using a cause analysis, the focus would be on the single act of manufacturing the defective product so that there was only one occurrence.