What is the difference between claims made coverage and occurrence coverage?
An occurrence policy is the same as what most people have on their cars and homes. It provides coverage for incidents that OCCUR during the life of the policy. If you cancel the policy and a claim comes in that occurred during the policy period, the claim should be covered. If the incident occurred before the effective date or after the termination date, it would not be covered. A claims made policy requires that the claim must have occurred during the policy period AND the policy must still be in place at the time a claim is filed. If a policy is not continued, the coverage is not continued for any claims that are received after the termination date of the policy, regardless of the fact that the incident occurred during the life of the prior policy. Claims made coverage is normally used for a new healthcare provider that is establishing a practice. The rates are lower and grow over a five year period. They never equal what an occurrence form of coverage would cost, but have the provis
