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Defining 'Occurrence' in Insurance Can Have Major Impact in Recovery
“Occurrence” in an insurance policy is a fickle word. Sometimes it means only one. Other times it means many. Moreover, courts may treat the meaning of “occurrence” differently depending on whether it is an occurrence in a first-party property damage claim or in a third-party liability claim. Two New York cases decided since 2015, Dataflow v. Peerless Insurance, 2015 WL 6023675 (NDNY 2015), and Selective Insurance of America v. County of Rensselaer, 26 NY3d 649 (N.Y. 2016) show how different interpretations of “occurrence” can lead to very different consequences for policyholders.
World Trade Center Properties
A seminal first-party coverage “occurrence” case, one discussed but not followed by the Dataflow court, is the U.S. Court of Appeals for the Second Circuit decision in World Trade Center Properties v. Hartford Fire Ins., 345 F.3d 154 (2d Cir. 2003) ( WTC Properties ).
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