Covers any claim that occurs during an active policy, even if the claim shows up years later
Claims made policy
Claim has to be made during the active policy period, and the loss has to have occurred within the active policy period
Occurrence policy
As long as there was an active policy at the time of the loss, regardless of when the claim was filed, that policy will pay out
Claims made policy
Claim has to be made during the active policy period, and the loss has to have occurred within the active policy period
Has a retroactive period where the insurance company will cover claims that occurred prior to the start of the policy
Has an extended reporting period (tail coverage) where claims can still be reported and covered after the policy ends
Retroactive period in claims made policy
Covers claims that occurred prior to the start of the policy
Extended reporting period (tail coverage) in claims made policy
Allows claims to still be reported and covered after the policy ends
Occurrence policy is better than claims made policy, as it covers any claims that occurred during the active policy regardless of when the claim is filed
With a claims made policy, if the loss occurred before the retroactive date or after the policy ends, there is no coverage
To get tail coverage on a claims made policy, the policyholder has to pay an additional premium, usually double the regular premium
