What is difference between claims made and occurrence policy

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.

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.

What is a occurrence policy?

What Is an Occurrence Insurance Policy? An occurrence policy provides coverage for incidents that happen during your policy period, regardless of when you file a claim. These policies can be more expensive than a claims-made policy because of how long coverage applies.

What is an example of an occurrence in insurance?

An occurrence is a single event that results in a single insurance claim. In home insurance, common occurrences include break-ins, fires, burst pipes, or even a dog bite that leads to a liability claim. Each incident for which a homeowner could make an insurance claim is one occurrence.