What is the difference between occurrence coverage and claims-made coverage?
An occurrence policy provides coverage for a claim that occurs during the policy period, regardless of when the claim is reported. For example, let’s assume you carry a malpractice policy from December 1, 1999 to December 1, 2000 and it is an occurrence policy. You never renew the policy. On August 16, 2001 you receive notice that you have been named in a malpractice lawsuit for something that happened on February 4, 2000. Because the incident occurred during your coverage period, your policy can provide protection for a covered claim, even though you received notice of the claim after your policy ended. A claims-made policy provides coverage for an incident that occurs during an active policy period only if the claim is also filed during an active policy period. Suppose you have a claims-made policy from December 1, 1999 to December 1, 2000 and do not renew that policy. On August 16, 2001 you receive notice that you have been named in a malpractice lawsuit for something that happened
