YOU ASK:

What is the definition of Occurrence Policy?

WE ANSWER:

Occurrence Policy provides protection from claims incurred when the incident happened within the policy period. These are paid even if the claims are filed years after the incident occurred, even when the policy has expired and no longer in force.

Occurrence Policies will not pay for incidents that happen before the term of the policy. This kind of policy provides a specific amount for a certain year.

For instance, Company A has an occurrence policy for $100,000 in 2001. In 2005, the company already is covered for $500,000. If someone files a claim in 2005, the insurance company will only pay for up to $100,000. Any claims beyond this will be paid by the company.

Was this insurance question and its answer useful?
Not a bit
  • Currently 0/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
 Very useful
Have an Insurance Question? Ask For Insurance
Insurance glossary by alphabet:
  1. A |
  2. B |
  3. C |
  4. D |
  5. E |
  6. F |
  7. G |
  8. H |
  9. I |
  10. J |
  11. K |
  12. L |
  13. M |
  14. N |
  15. O |
  16. P |
  17. R |
  18. S |
  19. T |
  20. U |
  21. V |
  22. W |
Link this answer Email to a friend Print Bookmark or Share