Occurrence form
Liability policy covering incidents that occur during the policy period when they later become claims.
Plain definition
Occurrence-form liability policies respond to bodily injury or property damage that takes place during the policy period, even if the lawsuit is filed years later. CGL is commonly occurrence-based, simplifying long-tail injury claims like asbestos or slow-building property damage where allowed.
Why it matters
You can have peace of mind after canceling occurrence GL that past work during the policy year remains covered for later suits, subject to limits then in force.
Example
A deck you built fails three years later. Occurrence GL from the year of construction may defend if the damage occurred during that policy term.
Common misunderstanding
Occurrence does not revive unlimited limits—only the limits purchased for the year of occurrence apply.
Policy language always controls. This is educational content, not advice. See our disclaimer.