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

In New Jersey, claims-made and occurrence insurance are two types of coverage that are available for purchase. The main difference between claims-made and occurrence insurance is when the insurance company’s responsibility begins and ends. Claims-made insurance pays for claims made during the policy period. For example, if an insured company has a claims-made policy that is in effect from January 1st to December 31st, any claims that are made during that time period will be covered by the policy. If a claim is made after the policy has expired, the insured company will no longer be covered by the policy. Occurrence insurance provides coverage for damages that occur during the policy period, even if the claim is made or reported after the policy has expired. This means that an insured company will be covered even if they make a claim several years after the policy ends. Overall, claims-made insurance covers claims that are made during the policy period, while occurrence insurance covers damages that occur during the policy period, regardless of when the claim is made.

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

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