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📋 '''Occurrence policy''' is a type of [[Definition:Insurance policy | insurance policy]] that provides [[Definition:Coverage | coverage]] for losses arising from events that take place during the [[Definition:Policy period | policy period]], regardless of when the [[Definition:Claim | claim]] is actually reported to the [[Definition:Insurance carrier | insurer]]. This stands in contrast to a [[Definition:Claims-made policy | claims-made policy]], which covers claims only if both the event and the reporting of the claim fall within the policy's active dates (or any applicable [[Definition:Extended reporting period | extended reporting period]]). Occurrence policies are the traditional form in many [[Definition:Liability insurance | liability]] and [[Definition:Property insurance | property]] lines, and they remain the dominant structure in [[Definition:General liability insurance | commercial general liability]], [[Definition:Homeowners insurance | homeowners]], and [[Definition:Commercial auto insurance | commercial auto]] coverage.

🔄 Under an occurrence policy, the key trigger is the date the [[Definition:Bodily injury | bodily injury]], [[Definition:Property damage | property damage]], or other covered event happened — not the date the insured became aware of it or reported it. This means a policyholder could discover harm years after the policy expired and still have a valid claim against the policy in force when the event occurred. For the insurer, this creates [[Definition:Long-tail liability | long-tail]] exposure, since [[Definition:Loss reserves | reserves]] must account for claims that may not surface for years or even decades. [[Definition:Actuarial science | Actuaries]] use [[Definition:Loss development | loss development]] factors and [[Definition:Incurred but not reported (IBNR) | IBNR]] estimates to project these latent liabilities, and [[Definition:Reinsurance | reinsurers]] factor the tail risk into their pricing and commutation strategies.

🛡️ The enduring appeal of occurrence policies for [[Definition:Policyholder | policyholders]] and [[Definition:Insurance broker | brokers]] lies in their simplicity and the breadth of protection they offer. An insured does not need to worry about maintaining continuous coverage to preserve the right to report a claim — once the event falls within a covered policy period, the right to claim is locked in. However, this certainty for the insured translates into greater uncertainty for [[Definition:Underwriting | underwriters]], which is why occurrence forms tend to carry higher [[Definition:Premium | premiums]] than claims-made alternatives in lines with significant latent exposure, such as [[Definition:Professional liability insurance | professional liability]] and [[Definition:Product liability insurance | product liability]].

'''Related concepts'''
{{Div col|colwidth=20em}}
* [[Definition:Claims-made policy]]
* [[Definition:Policy trigger]]
* [[Definition:Long-tail liability]]
* [[Definition:Incurred but not reported (IBNR)]]
* [[Definition:General liability insurance]]
* [[Definition:Extended reporting period]]
{{Div col end}}

Definition:Occurrence policy - Revision history

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