An occurrence policy responds to when the harm happened rather than when the claim was asserted. A policy in force in 2008 can be called upon decades later if the bodily injury or property damage occurred during that year.
Because liability attaches to the year of injury, long-tail claims implicate every policy in force across the exposure period, which produces allocation disputes among successive insurers.
Alternative Names:
Occurrence-Based Policy
Why it Matters?
Commercial general liability is typically written on occurrence forms, which is why asbestos, environmental, and abuse claims require historical policy archaeology going back decades. Locating and reconstructing lost policies is a specialized workstream in these matters, and the number of triggered years often determines whether total available limits are adequate.
Frequently Confused with
Related terms
Frequently asked questions
Which is better for the insured, occurrence or claims-made?
Can an old occurrence policy still be triggered today?
