What is the difference between claims-made and occurrence insurance?

Claims-made and occurrence insurance are two types of insurance policies, both of which are used in Florida. Claims-made insurance covers a policyholder only for claims made during the policy period. The policy period refers to the time during which the insurance company agrees to pay for any claims made against the policyholder. This type of policy provides coverage for any liability that occurs after the policy was purchased, and before it expires or is cancelled. Occurrence insurance, on the other hand, covers any claims that are made against the policyholder as a result of an incident that happened during the policy’s term, regardless of when the claim is made. This type of policy provides coverage even if the claim is made after the policy expires or is cancelled. In general, claims-made insurance is more common than occurrence policies because they are less expensive. However, occurrence policies are typically more comprehensive and offer more protection than claims-made policies. For this reason, it is important to understand what type of policy you are buying when looking for insurance coverage in Florida.

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What is the difference between claims-made and occurrence insurance?

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