What is claims made policy vs occurrence

An occurrence policy has lifetime coverage for the incidents that occur during a policy period, regardless of when the claim is reported. A claims-made policy only covers incidents that happen and are reported within the policy's timeframe, unless a tail is purchased.

What is a claims-made policy?

Claims-Made Policy — a policy providing coverage that is triggered when a claim is made against the insured during the policy period, regardless of when the wrongful act that gave rise to the claim took place. (The one exception is when a retroactive date is applicable to a claims-made policy.

Which is cheaper claims-made or occurrence?

What is the difference in cost between a claims-made policy and an occurrence policy? The claims-made policy costs at least 35% less when you compare the cost of buying a claims-made policy and the unlimited tail against having occurrence coverage for the same period.

What is the purpose of the claims-made form?

What Is a Claims-Made Policy? Insurance companies commonly write policies on a claims-made form. This means your insurer helps cover claims filed during your policy period.

What is the difference between claims-made and occurrence insurance quizlet?

Occurrence applies to BI or PD claims which occur during the policy period, regardless of any later time at which a claim is made. Claims-made applies to BI or PD which occur on or after the "retroactive date" and for which the claim is received or recorded by an insured or the company during the policy period.