What does occurrence insurance cover?

Occurrence insurance is designed to cover claims for injuries or damages that occur during the policy period, regardless of when the claim is actually reported. This means that if an incident takes place while the policy is active, the insured is protected even if the claim is filed after the policy has expired. This feature is what sets occurrence insurance apart from claims-made policies, which only cover claims made while the policy is in effect.

The benefit of occurrence insurance lies in the peace of mind it provides to policyholders, knowing they are protected for incidents that happened during the coverage period, regardless of when they are reported. This can be particularly important in industries where claims may take time to manifest or be reported.