Full Definition
Occurrence and claims-made are the two primary policy trigger mechanisms in insurance. An occurrence policy covers incidents that occur during the policy period, regardless of when the claim is filed (even years later). A claims-made policy covers claims first made during the policy period, regardless of when the incident occurred (subject to a retroactive date). General liability, property, and auto policies are typically occurrence-based. Professional liability, D&O, EPLI, and cyber policies are typically claims-made. Understanding the difference is critical because switching from claims-made to occurrence (or changing carriers) can create coverage gaps without proper tail coverage.
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