What it means
An occurrence policy responds to injury or damage that takes place while the policy is in force, even if the claim is filed years later. Most general liability policies are written this way.
A claims made policy responds to claims first made, and often reported, during the policy period, as long as the event happened after the retroactive date. Professional liability, cyber and some specialty policies are usually claims made.
Switching insurers or letting a claims made policy lapse needs care. Continuous coverage with the same retroactive date, or an extended reporting period, helps avoid gaps.
An example
Copperline Engineering Services designs a control system in 2025 under a claims made professional liability policy. A client alleges an error in 2027. Copperline is covered only if a policy is in force in 2027 with a retroactive date on or before the 2025 work.
Names in this example are fictional.
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Get a free contract checkClaims made versus occurrence, answered
Is general liability claims made or occurrence?
Most commercial general liability policies for small businesses are written on an occurrence basis. Some insurers offer claims made general liability for certain classes, and many professional liability and cyber policies are claims made. Check the declarations page, which shows the coverage basis and any retroactive date.
Which is better, claims made or occurrence?
Neither is better in every case. Occurrence coverage is simpler because the policy in force when the injury happened responds. Claims made coverage can cost less at first but requires continuous coverage and attention to retroactive dates and tail options. What matters is choosing the basis that fits the risk and managing it correctly.
General information only. It is not legal or insurance advice. Only issued policy documents and endorsements describe actual coverage.