An occurrence policy responds to a loss that happened during its term, whenever the claim is eventually made. A claims made policy responds to a claim first made and reported during its term, regardless of when the underlying event occurred, subject to a retroactive date. Which trigger applies decides which policy year pays.
Updated September 2026.
Why brokers care
The distinction matters most when a client changes carriers or lets a policy lapse. Under a claims made form, cancelling the policy can leave no coverage for work already completed unless extended reporting is purchased. Clients rarely understand this and frequently assume that because they were insured at the time of the work, they remain covered. They may not be.
What to check
- Which trigger applies for each line on the certificate
- The retroactive date on any claims made policy
- Whether prior acts coverage was carried forward at the last renewal
- Whether the contract requires an occurrence form specifically
- What extended reporting options exist and for how long
Common mistake
Letting a claims made policy lapse without extended reporting. The client was insured when the work was done and assumes that is enough. Under a claims made form it frequently is not.
Confirm the form when working through the certificate review checklist.