An occurrence form insurance policy and a claims-made and reported policy differ significantly in how they provide coverage for incidents and when claims can be filed.
Occurrence Form Insurance Policy
An occurrence form policy covers incidents that occur during the policy period, regardless of when the claim is reported. This type of policy can provide lifetime coverage for events that happened while the policy was active, even if the claim is filed years after the policy has expired (subject to any additional forms and/or exclusions)
Sample Claim:
A business owner purchases an occurrence policy that is active from January 1, 2025, to December 31, 2025. On March 15, 2025, a customer slips and falls in the store but doesn't report any injury at the time. In 2027, long after the policy has expired, the customer files a lawsuit for injuries related to the fall. The occurrence policy would still cover this claim because the incident occurred during the policy period, even though it was reported much later.
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Claims-Made and Reported Policy
A claims-made and reported policy only covers incidents that both occur and are reported during the active policy period. For coverage to apply, the policy must be in effect when the claim is made, regardless of when the incident actually occurred
Sample Claim:
A professional has a claims-made policy active from January 1, 2025, to December 31, 2025. On November 30, 2025, a client experiences an issue related to the professional's services. However, the client doesn't file a claim until January 15, 2026, after the policy has expired. In this case, the claims-made policy would not cover the incident because the claim was reported after the policy period ended, even though the incident occurred while the policy was active
Key Differences
- Timing of Coverage: Occurrence policies cover incidents that happen during the policy period, regardless of when they're reported. Claims-made policies require both the incident and the claim to occur within the active policy period
- Long-Term Protection: Occurrence policies provide lifetime coverage for incidents that occurred during the policy period.
Disclaimer: This information is provided for educational purposes only and should not be considered legal, financial, or insurance advice. For specific guidance related to your individual situation, please consult a licensed insurance professional or your insurance provider.