Claims Occurrence Form

What Does Claims Occurrence Form Mean?

A claims occurrence form is a type of liability insurance that provides coverage for damage-causing events that occur during the policy period, even if the claim is filed after the coverage period has ended. This is particularly important for professions or industries where the effects of loss or damage may become apparent long after the initial event.

Claims occurrence forms serve as an alternative to claims-made forms, which only reimburse claims if both the loss and the filing of the claim happened during the policy period.

A claims occurrence form is also commonly referred to as an occurrence form.

Insuranceopedia Explains Claims Occurrence Form

Many people consider claims occurrence forms to be the better option between the two types of insurance because they offer policyholders more flexibility regarding when they can file a claim. With a claims-made form, the policyholder may bear the full burden of a loss if they file the claim too late. In contrast, those with claims occurrence forms do not have to worry as much about timing when submitting their claims.

For example, Dr. Smith purchased an occurrence form of liability protection for five years, starting in December 2013 and ending in December 2017. In January 2018, a patient filed a claim alleging that the painkillers prescribed by Dr. Smith in November 2017 caused stomach ulcers a month later. The insurance company can still cover the damages on behalf of Dr. Smith, even though the policy period has ended because the event causing the damage occurred during the policy period. In essence, a claims occurrence form provides ongoing protection for a person or entity for any damage or loss that occurred during the policy period, regardless of when the claim is filed.