An occurrence policy is a type of liability insurance designed to provide coverage for incidents occurring during the term of the policy, even if the claim is made after the policy has expired. While this type of policy is becoming increasingly more commonplace in the insurance industry, the basic concept of a policy that covers injuries occurring for the life of the policy has been around for decades.

The primary purpose of an occurrence policy is to provide insurance coverage for events which may cause physical injury or property damage years after the event occurred. This can include events such as exposure to hazardous materials, faulty workmanship, or accidents caused by defective products. Occurrence policies are typically preferred by businesses over other types of insurance because they provide a much higher sense of security, ensuring that any claim filed years after the policy has expired will be completely covered.

Compared to claims-made policies, which only provide coverage if the claim is made while the policy is active, occurrence policies provide the benefit of having a prolonged period of coverage which effectively prevents the policyholder from being exposed to any expensive liabilities beyond the life of the policy. Insurers typically place a cap on the amount of coverage provided through occurrence policies in order to manage risks.

In today’s world, most business owners and individuals are turning to occurrence policies to provide liability protection for their companies and themselves. Of course, finding a policy that offers the right coverage at an affordable rate is key. By doing research, shopping around, and comparing the limits of coverage offered, you can find an occurrence policy that provides you with the protection you need for years to come.