At the heart of general liability insurance is coverage for a policyholder's liability for bodily injury and property damage caused by an "occurrence." Since 1986, an "occurrence" has been defined in standard-form language as an "accident, including continuous or repeated exposure to substantially the same general harmful conditions."

Disputes surrounding the meaning of "occurrence" often involve the question of whether it is the act of the policyholder or the resulting injury that must be accidental. In many instances, the act and injury are either both intentional or accidental. An example of the first is when someone intends to cause bodily harm and succeeds, such as in a murder. An example of the latter is a typical auto accident where, while the act of driving is volitional, both the collision and any resulting bodily injury and property damage are wholly unintentional.

One gray area occurs when the policyholder engages in intentional conduct that causes injury or damage of a type or extent that was unintended and unexpected by the policyholder. A majority of courts nationwide hold that the proper focus is on the damage or injury, i.e., whether the policyholder seeking liability coverage intended or expected the injury or damage to occur. As explained by the Minnesota Supreme Court, "[w]here there is no intent to injure, the incident is an accident, even if the conduct itself was intentional." [Am. Family Ins. Co. v. Walser.]