Which statement best describes Occurrence Insurance as it relates to policy periods?

Which statement best describes Occurrence Insurance as it relates to policy periods?

• A. You are covered only during the policy period.
• B. You are covered for all incidents in perpetuity.
• C. You are covered whenever a claim is filed, regardless of timing.
• D. You are covered even after the policy has expired.

Answer: (D)

Occurrence-based coverage is triggered by when the incident happens, not by when the claim is filed. If a covered event occurs during the policy period, the insurer covers any resulting claims even if those claims are filed after the policy has expired. That’s why being covered after expiration is the best description. It’s not unlimited in time for all incidents (coverage applies only to events that occurred during the policy), and claims-made style would require the claim to be made during the policy period unless tail coverage is in place.

Occurrence-based coverage is triggered by when the incident happens, not by when the claim is filed. If a covered event occurs during the policy period, the insurer covers any resulting claims even if those claims are filed after the policy has expired. That’s why being covered after expiration is the best description. It’s not unlimited in time for all incidents (coverage applies only to events that occurred during the policy), and claims-made style would require the claim to be made during the policy period unless tail coverage is in place.