Updated: January 18, 2026
Advertising & Editorial Disclosure
Per occurrence and claims-made policies both provide liability protection, but they apply coverage based on different triggers. With occurrence policies, coverage depends on when the incident happens. With claims-made policies, coverage depends on when the claim is made (and reported).
Below you can compare the two types of policies side-by-side to see how they function differently in more detail.
Incident timing | Must occur while coverage is active | Can occur earlier, but usually must be on/after the retroactive date |
Claim timing | Claim may be filed after the policy ends | Claim usually must be filed while the policy is active |
What happens after the policy ends | Claims can still be covered if the incident happened during the term | Coverage may stop unless the policy is renewed or has tail coverage |
A per occurrence business insurance policy will only cover you for incidents that happen while you have active coverage. In other words, it will not cover events before you got a policy and those after its term has passed, even if a claim is filed later. Generally speaking, general liability, commercial auto and many commercial property insurance plans operate on this standard.
To make it clear how it functions, we've provided these claim examples for covered and uncovered claims.
A claims-made business insurance policy covers you for claims first made while your policy is active. In the most common claims-made structure, the claim must also be reported to the insurer within the policy period (or a defined reporting window). Claims-made coverage also often depends on a retroactive (prior acts) date, which limits how far back the underlying incident can occur and still be eligible for coverage.
Generally speaking, professional liability (E&O) and policies like D&O (Directors and Officers Liability) and EPLI (Employment Practices Liability) often operate on this standard.
To show how it functions, we've provided examples of covered and uncovered claims for a professional liability policy below.
On claims-made policies, the retroactive (prior acts) date may match the policy start date if you’re buying coverage for the first time or had a lapse. But if you’ve kept continuous claims-made coverage, your retroactive date often stays tied to the first date you bought claims-made coverage, which can preserve coverage for older work.
Incident timing | Must occur while coverage is active | Can occur earlier, but usually must be on/after the retroactive date |
Claim timing | Claim may be filed after the policy ends | Claim usually must be filed while the policy is active |
What happens after the policy ends | Claims can still be covered if the incident happened during the term | Coverage may stop unless the policy is renewed or has tail coverage |
Per occurrence and claims-made policies don’t just describe insurance terminology they determine when coverage applies. Two businesses can have the same coverage type and similar limits but have different claim outcomes depending on whether coverage is triggered by the incident date (occurrence) or the claim/reporting date (claims-made).
In practice, this matters most when there’s a delay between when an event happens and when a claim is filed. So, you need to understand the following when understanding your current or future coverage terms.
Per occurrence and claims-made policies differ based on what triggers coverage. Occurrence-based policies respond based on when the incident happens, while claims-made policies respond based on when the claim is made (and reported). Since you'll likely have multiple types of business insurance, the key is understanding which form your coverage uses and how timing rules like retroactive dates and reporting requirements can affect whether a claim is covered.
About Connor Bolton
Connor Bolton is a Senior SEO and Content Manager, writer and reviewer at MoneyGeek. He manages MoneyGeek’s business insurance and pet insurance content, contributing original guides and reviewing coverage articles for editorial quality and methodology alignment. Connor is also responsible for building and maintaining MoneyGeek’s standards for these verticals, including insurer research processes, structured data collection and pricing models used to produce rate estimates across providers. His work helps readers understand coverage options, policy terms and cost drivers so they can make informed insurance decisions.
