What type of deductible is applied per occurrence and can be modified according to the policy?

The selected answer reflects a deductive approach commonly utilized in insurance policies regarding how claims are assessed. A per occurrence deductible is specifically applied to each incident that leads to a claim. This means that every time a covered event takes place—such as damage or loss—the deductible amount must be paid by the insured before the insurance coverage kicks in for the remaining costs.

Moreover, the flexibility to modify this type of deductible according to the policy allows policyholders to adjust their coverage and potential out-of-pocket expenses based on their specific risk management needs and financial strategies. This characteristic can be appealing for businesses that seek to balance their insurance costs with their risk appetite.

The other options don't capture these features. A location-based deductible typically varies based on the physical location of the insured property, which is distinct from the occurrence-focused nature of the correct answer. A percentage deductible is calculated as a percentage of a particular amount covered, such as the value of the property at risk, making it conditional rather than strictly per occurrence. A fixed dollar amount deductible involves a set monetary figure that does not change per event, lacking the adaptability and definition of per occurrence. Each of these alternatives differs in structure and application, underscoring why the per occurrence deductible stands out as the most fitting choice for