An occurrence policy is a type of insurance policy that provides coverage for claims that arise from incidents or events that occur during the policy period, regardless of when the claims are actually made. This means that even if a claim is made years after the policy has expired, if the incident occurred during the policy period, it would still be covered.
An example of an occurrence policy is a liability insurance policy for a construction company. If someone is injured on a construction site during the policy period, the occurrence policy would provide coverage for any resulting claims, even if they are made after the policy has expired.
Key features of an occurrence policy may include:
• Coverage for claims that arise from incidents or events that occur during the policy period, regardless of when the claims are made
• Generally higher premiums than claims-made policies due to the longer period of coverage
• Coverage that continues even after the policy has expired, as long as the incident occurred during the policy period
• No need for extended reporting or tail coverage, as the policy covers claims as long as they arise from incidents during the policy period
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