An occurrence policy
is preferred over a claims-made policy.
In a claims occurrence policy
, the coverage is available for lifetime provided that the wrongful act has "OCCURRED".
. Claims made coverage responds only to claims during the policy period (or extended reporting period).
These examples illustrate that changing from an occurrence policy
to a claims-made policy did not eliminate disputes about triggers of coverage.
In fact, a key to distinguishing a claims-made policy from an occurrence policy
is the very absence from an occurrence policy
of a discovery or manifestation requirement.
This is when the other insurance is an "occurrence" policy with an effective date prior to the inception date of the claims-made policy; and the claims-made policy either has no retroactive date or has a retroactive date earlier than the expiration of the occurrence policy
The court noted that conversely, had the policy been an "occurrence policy
" it would have decided otherwise, since no notice of the occurrence of the incident had been given to Intermed.
"We're one of just a few companies in the country that has a per occurrence policy
for mold," said the client.
The occurrence policy
is treasured for its relative simplicity and because a continuous string of occurrence policies may not be quite as susceptible to potential gaps in coverage as may be the case with claims-made policies that are not appropriately handled by those holding the responsibility of managing a company's risks.
In short, the cause of the insured's liability determines the number of occurrences, but that cause does not trigger coverage under an occurrence policy
. Coverage is triggered by bodily injury or property damage.
Conversely, under an occurrence policy
, only the allegedly negligent acts' of the insured nurse, which occurred during the time the occurrence coverage was in effect are covered.