How is an "occurrence" best defined in insurance terms?

In insurance terminology, an "occurrence" is best defined as an unexpected event that causes loss. This definition encapsulates the essence of what an occurrence typically implies within various insurance policies, which include property, liability, and other types of coverage.

When an event is termed an occurrence, it implies that it is not a regular or anticipated event, but rather a sudden and unforeseen incident that results in a loss that the insurance policy may cover. This could be anything from natural disasters, accidents, or other mishaps that lead to damage or injury. The foundational idea behind insurance is to provide financial protection against such unexpected events, making this definition crucial for understanding how insurance policies operate.

In contrast, the other options refer to other concepts within the realm of insurance. An insured item pertains to specific property or person that is covered under a policy, something that increases the chance of a loss relates more to risk factors rather than the event itself, and the likelihood of experiencing a loss speaks to the probability or risk assessment rather than the event that triggers coverage. Thus, defining an occurrence specifically as an unexpected event that leads to a loss aligns directly with the functional purpose of insurance.