Wednesday, August 5, 2015

Occurrence vs. Claims-Made Policies

Occurrence vs. Claims-Made Policies 

These are the two types of liability policies which exist. 

The claims made policy states that any claims that occur from incidents arising during the time the policy is in force will be covered only if they are made during the time the policy is in force. Claims reported more than 60 days after the policy expires will not be covered. An occurrence policy, on the other hand, will cover incidents during the time the policy is in force regardless of when the claim is made to the insurer. If you can only get a claims made policy, consider adding endorsements that provide an extended reporting period, although this will be quite expensive.

Liability policies sometimes come with a deductible, which you must pay before the policy takes over and pays the rest. Be sure to check whether any deductible you are considering is per occurrence or per claim. Deductible per occurrence is always preferable to deductible per claim, because a single occurrence can lead to multiple claims.

Michael Fillers, CPIA, NFIP
Morris Insurance Agency, LLC
3032 Dauphin Square Connector
Mobile, AL 36607
O - 251-473-5119
F - 251-473-6301
C - 251-753-8011
Matt 24:46-47
"Blessed is he whom his master will find at work when he arrives. Truly I tell you, he will put that one in charge of all his possessions."


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