Are general liability claims made or occurrences?

Commercial general liability (CGL) policies are standardly written on an occurrence basis.

🗓 Occurrence vs. Claims-Made

• ✅ Occurrence Form
  • Covers incidents happening during the active policy period.
  • Filing date can occur after the policy expires.
  • No tail coverage required when switching or closing policies.
  • Standard for Commercial General Liability Insurance.
• ⚠️ Claims-Made Form
  • Triggered only if the policy is active when filed.
  • Requires a retroactive date and extended reporting periods.
  • Common for professional, D&O, or cyber liability.
  • Rare for standard general liability, but available by endorsement.

The primary difference between the two forms is the coverage trigger: an occurrence policy covers incidents that happen during the active policy period regardless of when the claim is filed, while a claims-made policy covers claims brought against you and reported while the policy is active, provided the incident happened after a set retroactive date.

Occurrence Policy

• Trigger: The date the injury or damage happens.
• Reporting window: You are covered even if the claim is filed years after the policy expires or cancels, as long as it was active when the event took place.
• Tail coverage: Not needed because past active years protect you permanently for old incidents.
• Common use: Standard Commercial General Liability (CGL) policies.

Claims-Made Policy

• Trigger: The date the claim or lawsuit is filed and reported to the insurer.
• Reporting window: The incident must happen on or after your retroactive date and be reported while the policy remains active.
• Tail coverage: Often required (Extended Reporting Period or ERP) if you cancel or switch policies, so you can report future claims stemming from past work.
• Common use: Professional liability (Errors & Omissions) and Directors & Officers (D&O) insurance.

To tell if an insurance policy is claims-made or occurrence, check the declarations page or the policy form definitions for terms like "Retroactive Date" or "Extended Reporting Period", which only appear on claims-made policies.

Check the Policy Documents

• Look at the Declarations Page: This is the summary page at the front of your policy.
• Search for a Retroactive Date: If you see a "Retroactive Date" or "Prior Acts Date" listed, it is a claims-made policy. If there is no retroactive date mentioned, it is usually an occurrence policy.
• Look for Form Names: Read the title of the coverage form. It often says "Occurrence Coverage Form" or "Claims-Made Coverage Form" at the top of the specific section.

Key Differences to Identify the Type

• Occurrence Policy
  • How it works: Covers events that happen while the policy is active, even if you cancel the policy or file the claim years later.
  • Clues: No mention of a retroactive date; no need to buy extra "tail" coverage when you stop the policy. Common for general liability.
• Claims-Made Policy
  • How it works: Covers claims only if the incident happens after the retroactive date and the claim is filed while the policy is active (or during an extended reporting period).
  • Clues: Lists a specific retroactive date; mentions terms like "Extended Reporting Period" (ERP) or "tail coverage". Common for professional liability, medical malpractice, and D&O insurance.

You can read more about the core mechanics through The Hartford's Comparison Guide or review definitions via the Insurance Training Center.

A general liability claim is a formal request for financial coverage made against a business's Commercial General Liability Insurance policy when a third party accuses the business of causing physical harm, property damage, or reputational injury.

What a General Liability Claim Covers

General liability claims generally fall into three main categories involving non-employees (third parties):

• Bodily Injury: A customer, client, or visitor gets physically hurt because of your business operations or premises—such as a visitor slipping on a wet floor in your lobby.
• Property Damage: Your business operations or employees accidentally damage someone else's property—such as a contractor breaking a client's window while working on-site.
• Personal and Advertising Injury: Non-physical harms related to your business reputation or marketing, such as claims of slander, libel, or copyright infringement in an advertisement.

What It Does Not Cover

A standard general liability claim does not pay for:

• Employee injuries: These are covered under workers' compensation.
• Professional mistakes: Financial losses from bad professional advice require professional liability insurance.
• Damage to your own business property: This requires commercial property insurance.
• Work vehicle accidents: These require commercial auto insurance.

Choose an occurrence policy if you want permanent, worry-free coverage for past incidents, or a claims-made policy if you want lower initial costs and plan to secure tail coverage when you change jobs or retire.

Key Differences in Cost and Coverage

• Occurrence Policy: Covers any incident that happens while the policy is active, even if you cancel the policy years later. It has higher upfront costs, but you never need to buy tail insurance. Learn more about these rules from The Hartford.
• Claims-Made Policy: Covers claims only while the active policy is in effect and requires the incident to happen after a set retroactive date. It starts cheaper with stepped price increases, but you must buy expensive tail insurance (an extended reporting endorsement) when you leave or retire. Read detailed breakdowns on White Coat Investor.

Which One Should You Pick?

• Pick Occurrence if: You run a private practice, work independently, or want zero liability risks regarding future claims after leaving a job.
• Pick Claims-Made if: Your employer pays for the policy and the eventual tail coverage, or you need lower upfront rates when starting out.