Claims-Made vs Occurrence Policies Explained
Whether a policy is claims-made or occurrence decides which policy responds to a claim — and a gap when you switch can leave you uncovered.
Last reviewed: May 26, 2026 by the BizLeaseCheck Editorial Team
General information, not insurance or legal advice.
Overview
An occurrence policy covers a loss that happens during the policy period, no matter when the claim is made. A claims-made policy covers a claim made during the policy period, usually only if the event happened after a stated retroactive date.
The risk in claims-made coverage is the retroactive date and the tail: switch carriers or let coverage lapse, and a claim for past work can fall through the gap.
Topics to check
Occurrence coverage is triggered by when the injury or damage happened; you can make a claim years later under the policy that was in force at the time. Claims-made coverage is triggered by when the claim is first made and reported, subject to the retroactive date.
Professional liability (E&O), D&O, and cyber are commonly claims-made; general liability is often occurrence.
Insurance (Cornell LII Wex)A claims-made policy with a retroactive date equal to the policy inception covers only acts after that date — there is no coverage for prior work. "Prior acts" or "full prior acts" coverage extends back to earlier work and is valuable when switching carriers.
Confirm the retroactive date and whether prior-acts coverage carries over, especially if you have switched insurers.
Claim (Cornell LII Wex)When a claims-made policy ends, an extended reporting period (a "tail") lets you report claims for past covered work after the policy expires. Without a tail, claims made after expiration may not be covered.
Check the tail option, its length and cost, and the deadline to elect it; a short or unavailable tail is a real gap when you change carriers or close the business.
Key takeaways
- Occurrence covers when the event happened; claims-made covers when the claim is made.
- A retroactive date can exclude all prior work; prior-acts coverage extends it back.
- A tail (extended reporting period) covers post-expiration claims for past work.
- Switching carriers without prior-acts or a tail creates a coverage gap.
- Confirm retro date, prior acts, and tail terms with a licensed agent or broker.
Official resources
Coverage-review notes
Guide confidence marker: Confirm with a licensed agent or broker.
- Trigger, retroactive date, prior-acts, and tail terms depend on the policy form and state law.
- Confirm claims-made mechanics and any gap when switching carriers with a licensed agent or broker.
- This guide is general information from the BizLeaseCheck Editorial Team. It is not insurance advice or a coverage opinion; confirm coverage with a licensed agent or broker.
Frequently asked questions
Is claims-made or occurrence coverage better?
Occurrence coverage is generally simpler because it responds based on when the event happened. Claims-made coverage can be appropriate (and is standard for some lines) but requires careful attention to the retroactive date and tail to avoid gaps.
What is a "tail" in insurance?
A tail, or extended reporting period, lets you report claims for past covered work after a claims-made policy expires. Without it, a claim made after the policy ends may not be covered.
Is this insurance or legal advice?
No. This is general, educational information to help you read your own policy — it is not insurance advice, a coverage opinion, or legal advice. Coverage depends on the exact policy form, endorsements, declarations, and state law, so confirm what a policy covers (and whether the limits are adequate) with a licensed insurance agent or broker, and read the actual policy.