Occurrence Policy
Key Takeaway
A type of insurance policy that covers incidents occurring during the policy period, regardless of when the claim is subsequently filed. Unlike claims-made policies, occurrence coverage does not require tail coverage when switching carriers because each policy year's coverage remains permanently in effect for incidents during that period..
Definition
A type of insurance policy that covers incidents occurring during the policy period, regardless of when the claim is subsequently filed. Unlike claims-made policies, occurrence coverage does not require tail coverage when switching carriers because each policy year's coverage remains permanently in effect for incidents during that period.
Why This Matters for Law Firms
Understanding this concept is essential for law firms because it directly affects how your coverage responds when a claim is filed. Misunderstanding policy structure terms can leave your firm exposed to uninsured losses, particularly during carrier transitions or when claims surface years after the underlying work was performed.
Example Usage in Context
A managing partner reviewing the firm's renewal materials might ask the broker: "Can you confirm our occurrence policy aligns with what we had under the prior carrier? We want to make sure there are no gaps in our retrospective protection."
Related Q&A
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