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

Claims-made and occurrence insurance are two types of insurance policies that are used in Minnesota. Both policies provide protection to businesses in the event of liability claims made against them. The main difference between them is in the type of coverage provided. With claims-made insurance, the policyholder is only covered for liability claims made during the policy period. This means that the policyholder must renew the policy each year in order to remain covered. If a claim is made after the policy period has ended, then the policyholder will not be protected. On the other hand, occurrence insurance provides coverage for liability claims that occur during the policy period, regardless of when the claim is made. This means that the policyholder will remain covered for an indefinite period of time after the policy period ends, provided the claim is made within the statute of limitations for that particular type of claim. In Minnesota, claims-made insurance is generally used for more specialized types of businesses, such as professional practices, while occurrence insurance is more commonly used for general liability insurance. It is important to understand the difference between the two types of policies before purchasing one in order to make sure that the policy provides the appropriate coverage.

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

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