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

Claims-made and occurrence insurance are both types of liability insurance, but they differ in certain aspects. Claims-made insurance will cover a claim or lawsuit that is reported while the policy is in effect. This policy needs to be renewed on a regular basis to ensure coverage for any new claims. It is generally less expensive than occurrence insurance, but it does not provide coverage for incidents that occurred before the policy was in effect. Occurrence insurance covers claims or lawsuits resulting from incidents that occur while the policy is in effect, even if the claim is reported after the policy expires. For example, a claim for damage caused by a storm that occurred while a policy was in effect would still be covered, even if the claim was reported after the policy had expired. Occurrence insurance is typically more expensive than claims-made insurance. In Nevada, the regulation of liability insurance is overseen by the Nevada Division of Insurance. Consumers should always read their policy language carefully and work with a knowledgeable insurance professional to ensure proper coverage for their particular situation.

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

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