GENERAL KNOWLEDGE

Detailed explanation-1: -An occurrence policy offers lifetime coverage for incidents that occur during the policy period, regardless of when the claim is reported. A claims-made policy only covers incidents that occur and are reported within the policy’s time frame unless a ‘tail’ extension is purchased.

Detailed explanation-2: -What Is an Occurrence Insurance Policy? An occurrence policy provides coverage for incidents that happen during your policy period, regardless of when you file a claim. These policies can be more expensive than a claims-made policy because of how long coverage applies.

Detailed explanation-3: -Insurers typically use claims-made policy forms for professional liability insurance (also called errors and omission insurance or E&O) and directors and officers insurance (D&O).