Claims-made vs. occurrence

Published 2026-06-12 · by Brokly

The short answer: It's about WHEN the policy must be active: a claims-made policy covers claims filed while it's in force — an occurrence policy covers incidents that happen while it's in force.

What triggers coverage

Claims-made: The claim date — when someone files against you

Occurrence: The incident date — when the harm happened

After you cancel

Claims-made: Coverage for past work ends unless you buy an extension ("tail" coverage)

Occurrence: Old incidents stay covered by the policy that was active at the time

Typical lines

Claims-made: Professional liability and similar lines often are

Occurrence: General liability is usually written this way

Price pattern

Claims-made: Often starts cheaper, then steps up as years of past work accumulate

Occurrence: Steadier premium

The difference only bites when time passes: work you did years ago can produce a claim today. Under an occurrence policy, the policy that was active back then is the one that pays. Under a claims-made policy, today's policy must still be active — and must reach back far enough — or the claim lands uncovered.

That's why switching or dropping a claims-made policy is the moment to slow down: the premium for tail coverage buys the right to report claims after the policy ends. If you carry professional liability, ask which form you have before you ever let it lapse.

See how this plays out for your trade: physician offices · home-health agencies

Related terms

Descriptions reflect how these coverages typically work — exact terms live in the policy. Not legal or compliance advice.

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