An occurrence policy generally responds based on when injury or damage occurs during the policy period, even if the claim is made later.
Definition
An occurrence policy generally uses the date of an injury or property damage during the policy period as its coverage trigger. A claim may be reported after that period ends, subject to the policy's wording, exclusions, limits, and notice conditions. This structure is often associated with general liability coverage. Firms should read the actual policy to understand what counts as an occurrence and which events or damages qualify. An occurrence policy does not automatically cover every claim tied to work performed during the period, and it is not the same as claims-made coverage, where the timing of the claim and its reporting generally matter. Coverage can also be affected by multiple policies, endorsements, and the facts of a loss. Owners may compare the trigger alongside the firm's services, contracts, and coverage requirements. See general liability insurance for related context.
How owners use it
- Owners identify the policy period that may correspond to the date of an alleged injury or property damage.
- A firm compares the occurrence trigger with claims-made terms when reviewing coverage for operational risks and client contract requirements.
- If property damage occurs during a policy period and a claim arrives later, the owner checks that period's policy and follows its notice requirements.
- Owners review exclusions and limits because an occurrence trigger alone does not establish that a particular loss is covered.
