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

Claims-made and occurrence insurance are two types of liability insurance policies that are used to protect individuals and businesses from financial losses due to lawsuits and other claims. The main difference between the two is when the policy pays out. With occurrence insurance, the policy pays out if the incident that leads to a claim happened during the coverage period, even if the actual claim is not made until after the coverage period ends. This means that if an incident occurs during the coverage period and a claim is made after the coverage period ends, the occurrence policy would still pay out. On the other hand, claims-made insurance requires that the incident and claim both occur during the same coverage period in order for the policy to pay out. This means that even if the incident happened during the coverage period, the claim must occur during the coverage period as well in order for the policy to pay out. In Oregon, claims-made and occurrence insurance policies are both available, though some insurers may only offer one type of policy over the other. It is important to review the terms and conditions of a policy to make sure that it covers possible risks and provides the protection that is needed for an individual or business.

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

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