Maximize Coverage Understanding Claims Made Vs Occurrence Policies
Real-World Examples and Industry Insights
In the healthcare industry, claims-made policies are prevalent due to the high risk of malpractice claims. Doctors often rely on tail coverage to protect against claims made after they retire or switch practices. Conversely, construction companies may opt for occurrence policies to cover long-term liabilities associated with completed projects.
According to the Insurance Information Institute, the choice between these policies can significantly impact a company's financial health and risk management strategy1. Understanding the specific needs of your industry and business model is crucial in making an informed decision.