# Occurrence vs Claims-Made Insurance *Reviewed 2026-05-15* > Two policies can carry the same limit and still respond very differently, because they are triggered at different moments. Knowing which trigger you have decides whether a late claim is covered. ## Occurrence policy Responds to events that happen during the policy period, no matter when the claim is filed, even years later. ## Claims-made policy Responds to claims first made during the policy period, which is why prior-acts coverage matters when you switch carriers. ## Comparison | Feature | Occurrence policy | Claims-made policy | | --- | --- | --- | | What triggers coverage | When the event happened | When the claim is first made | | Late claims | Covered if the event fell in the policy period | Covered only if the policy or tail is still in force | | Switching carriers | Simple, past periods stay covered | Needs prior-acts (a retroactive date) or a tail | | Where it is common | General liability and property | Professional liability, D&O, and cyber | | Cost over time | Higher early, more stable later | Lower early, rises toward mature pricing | ## Which is right for you - Occurrence policy: An occurrence policy is the simpler choice when you can get it, because past periods stay covered with no tail to buy. It is the norm for general liability and property. - Claims-made policy: A claims-made policy is standard for professional, management, and cyber lines. It works well as long as you protect the retroactive date and buy tail coverage when you leave. The trigger is the whole difference An occurrence policy locks in coverage based on when something happened. If the event falls inside the policy period, a claim is covered even if it arrives years after that policy expired. A claims-made policy works the other way: it covers a claim only if the claim is first reported while the policy (or a tail extending it) is active. Same limit on paper, very different behavior when a claim shows up late. This is why professional liability, directors and officers, and cyber are usually written claims-made. Those lines see claims surface long after the work was done, so carriers price and manage them around the reporting date. General liability and property are typically occurrence, which keeps past periods covered without extra steps. What to watch when you switch The risk with claims-made coverage is the gap that opens when you change carriers or close a business. Two tools close it: a retroactive date that preserves prior acts, and tail coverage (an extended reporting period) that lets you report old claims after the policy ends. Drop either one and work you did under the old policy can become uncovered. Before you move a claims-made policy, confirm the retroactive date carries over or buy the tail. Talk to an agent before you switch so nothing falls through. ## Frequently asked questions ### What is tail coverage? Tail coverage, or an extended reporting period, lets you report claims after a claims-made policy ends, as long as the event happened after the retroactive date. It closes the gap when you switch carriers or close the business. ### Why are most professional liability policies claims-made? Claims for professional work often surface long after the work was done. Writing the coverage claims-made lets carriers price and manage that long reporting tail, which is why E&O, D&O, and cyber are usually claims-made.