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

Claims-made insurance is a type of liability insurance policy that provides coverage for legal claims that are filed during the policy period. This type of policy is typically used when a company or individual needs coverage for a particular incident that may or may not occur in the future. On the other hand, occurrence insurance provides protection for damages that have already occurred or may occur in the future, regardless of when the claim is filed. In Rhode Island, claims-made insurance is usually used by professionals such as physicians and lawyers who need coverage for their professional services. This type of policy can protect them from financial liability resulting from any errors or omissions that have occurred during the policy period. On the other hand, Rhode Island business owners may utilize occurrence insurance to protect their business from any mishaps or property damage that has or may occur in the future, even if it is not reported until after the policy has expired. The main difference between claims-made and occurrence insurance is that claims-made only covers claims that are reported during the policy period, while occurrence insurance covers any damages that have occurred or may occur in the future, regardless of when the claim is filed. Occurrence insurance can provide businesses and professionals with a greater degree of protection and peace of mind since it covers any past or future damages, while claims-made insurance only covers incidents that have been reported during the policy period.

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

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