Liability is not always the easiest concept to understand when it comes to your insurance needs. Essentially, all liability policies will be broken into two basic categories. These will be claims-made or occurrence policies. Occurrence is a policy that aims to cover claims that take place during the traditional period of a policy and its limits. This is the standard policy and the one a vast majority of businesses and individuals opt for because it can be affordable and practical.
Key Differences in Liability
A claims made policy has a few key differences from an occurrence policy. Unlike occurrence policies, which are focused around the period of coverage, a policy that falls into a claims-made category will depend on the specific timing of the claim and when it is being made. Understanding which policy is right for your needs can make a world of difference when it comes to keeping your organization and your clients safe from harm. Additional points to consider include:
- Clear and concise reporting requirements
- Claims-made policies include retroactive dates
- Possible extension for the reporting period
Determine the Correct Fit
Understanding the intricacies of your liability policy is key to keeping your business protected. Review your current policy and determine whether or not you might benefit from making a few slight adjustments to your liability plan.