Occurrence Vs. Claims-Made Policies: What's The Difference?

There are various types of insurance policies to help businesses manage their risks. Some business insurance policies are "occurrence" policies while others are "claims-made" policies. Since the type of policy you have will impact your coverage, it's important to understand the difference.

Occurrence Policies

An occurrence-based policy covers claims that result from an event that occurred during your coverage period. As long as the triggering event occurred during the coverage period, it does not matter if the claim is filed outside the coverage period. For instance, say you had general liability coverage during 2022 and a customer was injured on your premises during that year. You will be covered under that policy for resulting claims, even if the policy expired at the end of 2022 and the injured party waited until 2023 to report the incident and bring a claim against you.