Claims Occurrence vs Claims-Made.
There are two types of liability coverage which you need to be aware of: occurrence and claims-made insurance. Both types of insurance come with their own advantages and disadvantages, however it is vital to know what your coverage provides, to ensure you are protected.
Occurrence-based indemnity offers coverage for incidents which occur during the policy’s period, meaning that if a claim is made in 2023 on an event which occurred in 2016, if your policy was active between 2015 and 2022, you will still be covered on claims made relating to 2016, despite your policy having ended. As long, as the incident occurred during the time that your policy period was active, you are provided with lifetime coverage for claims made during this timeframe.
Claims-made policies cover against any claims which occur, and are reported, during the time that the policy is active. Once a policy is cancelled, any further claims that come through will not be covered. If a claim is made in the future, against an incident which occurred during the policy period, it will not be covered if the policy has ended.
Run-off Coverage, is an additional coverage to protect against any claims made after the expiration date of a claims-made policy.
Read our article on run-off coverage for more information.