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

The main difference between claims-made and occurrence insurance is how they protect the policyholder from legal claims. Claims-made insurance provides coverage for a policyholder for claims that are reported during the policy period and for any claims reported after the policy period if they are related to events that happened during the policy period. This means that the policyholder must purchase “tail coverage” in order to be protected from legal claims after the policy period ends. Occurrence insurance, on the other hand, provides policyholders with coverage for legal claims made against them that are related to events which took place during the policy period, regardless of when the claims are made. This means that policyholders do not need to purchase “tail coverage” in order to be protected from legal claims after the policy period ends. In Texas, the difference between claims-made and occurrence insurance is important for businesses and individuals to be aware of. Knowing which type of insurance you have and how it works can ensure that you are adequately protected in the event of a legal claim.

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

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