What is the difference between claims-made and occurrence policies?

Claims-Made: Covers claims made during the policy period. Occurrence: Covers incidents that occur during the policy period, regardless of when the claim is filed.

Claims-made policies cover incidents reported during the policy period, regardless of when they occurred, while occurrence policies cover incidents that happen during the policy period, even if reported later.

A law firm selects a claims-made policy to cover legal malpractice claims reported during the policy period, even if the incident occurred earlier.

Discuss with your broker whether a claims-made or occurrence policy is more suitable for your business’s risks and operations.