Firearms Insurance Agent Blog

Occurrence vs. Claims-Made Insurance

You can divide most business insurance policies can between two types: occurrence and claims-made. Which type you choose impacts your reimbursement, your bill, as well as the lifecycle of your policy.

The main difference between the two is that an occurrence policy steps in when an injury occurs anytime the policy is active. A claims-made policy, meanwhile, steps in only when a claim is filed during the policy period.

Read on to learn more:

Occurrence policy

Most general liability policies fall under the occurrence category. However, so are many other types of insurance. Auto liability, employers’ liability, product liability, and others are typically written as occurrence policies. An occurrence policy’s advantage is that it will kick in during or after the policy period, so long as the incident in question took place during the policy period.

Claims-made policy

As stated previously, a claims-made policy only covers claims that are filed during the policy period. Even if the incident occurs during the period, but you only file afterward, you won’t be covered. This can cause difficulties during a coverage gap period, typically when you’re switching policies. Thankfully, many businesses can purchase an extended reporting period (ERP), which covers you once your policy has expired.

To learn more about occurrence and claims-made policies or find out which one is right for you, contact Firearms Insurance Agent. We can help you find the best business insurance policy for your firearms business today.