Master Claims Made vs Occurrence Insurance Secrets Today

When deciding between claims-made and occurrence policies, consider the following factors:

• Cost: Claims-made policies usually start with lower premiums, but the cost can increase over time. Occurrence policies have higher upfront costs but offer long-term savings by covering future claims without additional fees.
• Coverage Needs: If your industry is prone to delayed claims, an occurrence policy might be more suitable. Conversely, if you anticipate frequent policy changes, a claims-made policy with tail coverage could be more flexible.
• Peace of Mind: Occurrence policies provide lasting coverage without worrying about policy renewals or tail coverage, which can be appealing for those seeking simplicity and security.