What is an Occurrence Policy? A Comprehensive Legal Overview

Q: How does an occurrence policy differ from a claims-made policy?

An occurrence policy covers incidents that happen while the policy is active, while a claims-made policy only covers claims made during the policy period.

Q: Who needs an occurrence policy?

Professionals in fields like healthcare and law often need occurrence policies to protect against potential malpractice claims.

Definition & meaning

An occurrence policy is a type of professional liability insurance that provides coverage for claims related to alleged malpractice or negligence that happen during the policy period. This means that if an incident occurs while the policy is active, the policyholder is protected, even if the claim is made years later. For example, if a healthcare provider treats a patient while insured and the patient later files a lawsuit for an incident that occurred during that coverage, the provider is still protected by the policy, regardless of whether they have insurance at the time of the lawsuit.

Table of content

Legal use & context

Occurrence policies are primarily used in the field of professional liability insurance, particularly for healthcare providers, attorneys, and other professionals who may face claims of negligence. This type of insurance is essential for protecting individuals against claims that arise long after the services were provided. Users can manage their insurance needs through legal forms and templates available from platforms like US Legal Forms.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

(Hypothetical example) A dentist purchases an occurrence policy in 2010 and treats a patient in 2012. The dentist cancels the policy in 2015. In 2020, the patient files a lawsuit claiming malpractice from the 2012 treatment. The dentist is covered under the occurrence policy because the incident occurred while the policy was in effect.

State-by-state differences

Examples of state differences (not exhaustive):

State	Occurrence Policy Regulations
California	Occurrence policies are commonly used and generally accepted in professional liability.
Texas	Occurrence policies are available, but many professionals opt for claims-made policies due to cost.
New York	Occurrence policies are recognized, but the market is competitive with many claims-made options.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term	Definition
Occurrence Policy	Covers incidents occurring during the policy period, regardless of when claims are made.
Claims-Made Policy	Covers claims made during the policy period, regardless of when the incident occurred.

Common misunderstandings

What to do if this term applies to you

If you believe an occurrence policy applies to your situation, consider reviewing your insurance coverage to ensure it meets your needs. You can explore US Legal Forms for templates that can help you manage your insurance documents. If your situation is complex or involves a claim, consulting a legal professional is advisable.

Find a legal form that suits your needs

Browse our library of 85,000+ state-specific legal templates.

This field is required

Quick facts

Coverage period: During the active policy duration
Claim filing: Can be made years after the incident
Common users: Healthcare providers, attorneys, and other professionals

Key takeaways

FAQs

What is an occurrence policy?

An occurrence policy is a type of insurance that covers claims for incidents that occur during the policy period, regardless of when the claim is filed.