Insurance Topic
Claims-Made vs Occurrence
Claims-made vs occurrence describes two distinct policy trigger structures that determine when liability insurance coverage applies.
Definition
Claims-made vs occurrence refers to the structural distinction between insurance policies that are triggered by when a claim is reported (claims-made) and those triggered by when the covered event occurs (occurrence), regardless of when the claim is filed.
Structural Characteristics
- Claims-Made Form: Coverage applies when the claim is first reported during the active policy period, provided the act occurred on or after any applicable retroactive date.
- Occurrence Form: Coverage applies if the covered event occurred during the policy period, regardless of when the claim is later reported.
- Claims-made policies may require continuous renewal to preserve prior act coverage.
- Occurrence policies create permanent coverage for events that occurred during the policy term.
Parameters & Conditions
- Claims-made coverage requires both a covered act and timely claim reporting within the policy term or reporting extension.
- Occurrence coverage requires the event itself to occur within the policy term.
- Extended reporting periods may modify claims-made reporting windows.
- Policy transitions may affect continuity of coverage triggers.
Topic Relationships
Exceptions, Limitations & Boundaries
The trigger mechanism does not alter policy exclusions, limits, or deductibles. Coverage remains subject to all other policy provisions and conditions, including definitions of covered acts, wrongful conduct, or occurrences.
Claims-Made vs Occurrence: Definitional FAQ
Does claims-made coverage require continuous renewal?
Claims-made coverage often depends on maintaining uninterrupted policy periods to preserve prior act protection.
Can a claim be reported years after an occurrence policy expires?
Yes. If the event occurred during the policy term, occurrence coverage may respond even if the claim is filed later.
Is one trigger type inherently broader than the other?
Neither trigger is inherently broader; each operates under distinct temporal conditions defined by policy language.