Occurrence vs claims-made
Two ways liability policies decide if a claim is covered—when it happened vs when it was reported.
Plain definition
Occurrence policies cover incidents that happen during the policy period regardless of when the claim is filed. Claims-made policies cover claims first made and reported during the period (and sometimes after, with tail coverage) if the wrongful act occurred after a retroactive date. Professional and D&O lines often use claims-made.
Why it matters
Switching claims-made carriers without tail coverage creates gaps for old work that gets sued later.
Example
You leave a consulting firm; a client sues next year for advice given while you were insured on claims-made. Without tail or prior acts on the new policy, defense may be uninsured.
Common misunderstanding
Occurrence is not always “better”—it depends on continuity, tail purchases, and retro dates on claims-made programs.
Policy language always controls. This is educational content, not advice. See our disclaimer.