Occurrence vs. Claims-Made Insurance Policies

Understanding the difference between Occurrence and Claims-Made insurance policies is essential for vendors navigating insurance compliance within the VIVE platform. These two policy types affect how and when insurance coverage is triggered—and can significantly impact how claims are handled.

What Is a Claims-Made Policy?

A Claims-Made insurance policy provides coverage only when a claim is made during the active policy period, regardless of when the incident actually occurred.

Key Characteristics:

• The policy must be active at the time the claim is reported.

• If a claim is reported after the policy expires, it will not be covered, even if the incident happened during the coverage period.

Example:

A vendor has a Claims-Made General Liability policy active from January to December. An incident occurs in July, but the claim is not made until the following March (after the policy expired). The claim will not be covered unless tail coverage was purchased.

What Is an Occurrence Policy?

An Occurrence insurance policy provides coverage for incidents that occur during the policy period, regardless of when the claim is filed—even if the policy has expired by the time the claim is submitted.

Key Characteristics:

• The coverage is triggered by the date of the incident, not the date the claim is filed.

• Offers long-term protection for incidents reported months or years after the work was completed.

• Often preferred by clients for long-tail liability protection.

Note: Vendors with Claims-Made policies should confirm:

• The retroactive date is listed on the COI.

• Appropriate tail coverage is purchased upon cancellation or switch to Occurrence.

Example:

A vendor has an Occurrence-based policy active in 2024. A claim is filed in 2025 regarding property damage that occurred in 2024. The claim is covered under the 2024 policy.

Which Is Preferred?

While both policy types are used in the insurance industry, many VIVE clients prefer or require Occurrence-based policies—especially for General Liability—because they provide long-term coverage for completed work.

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