Policy language

Claims-made vs. occurrence coverage

The headline limit is only one part of a liability policy. The timing rule that triggers coverage can change how you manage renewals, cancellations, prior work, and late-reported claims.

Occurrence in plain language

For an occurrence form, the key event generally must occur during the policy period. A claim may be reported later, subject to the policy's terms, definitions, exclusions, and conditions. This structure makes the date of the incident especially important.

Claims-made in plain language

For a claims-made form, the claim generally must be made during the policy period and other conditions may apply. The policy may also require that the event occurs after a retroactive date. Reporting deadlines, extended reporting provisions, and continuity of coverage therefore deserve careful attention.

Questions before changing policies

• Are there known circumstances that should be reported before the current policy ends?
• Will the new policy preserve the existing retroactive date?
• Is the proposed extended reporting period limited to claims arising from past work?
• Do defense costs erode the stated limit?
• Does the contract require a particular form, date, or continuity wording?