Maximize Coverage Understanding Claims Made Vs Occurrence Policies

Occurrence Policies: A Different Approach

Occurrence policies, on the other hand, cover incidents that occur during the policy period, regardless of when the claim is filed. This means that even if a claim is made years after the policy has expired, the coverage is still applicable as long as the incident happened during the active period of the policy.

This type of policy provides peace of mind, as it eliminates the need for tail coverage and ensures that all incidents are covered indefinitely. However, occurrence policies often come with higher premiums due to the extended coverage they offer. For businesses with stable liability risks, occurrence policies can be a more straightforward and predictable option.