Understanding occurrence-based insurance
As a small business owner, you know it’s important to understand how your insurance policy works.
An occurrence-based policy covers losses that happen during the policy period, even if it's not active when you submit a claim.
Let's say you purchased a $1 million occurrence-based general liability policy.
In year 1, your business is sued for $1 million.
When your policy is renewed at the beginning of year 2, you'll have another $1 million worth of coverage.
Occurrence-based and claims-made policies are often found in specific types of insurance coverage.
For example, your general liability, commercial auto, and umbrella liability insurance will be occurrence-based.
If you own a business with more assets at risk, it may be best to invest in an occurrence-based policy.
Get the right coverage for your small business with Insureon today.
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An occurrence-based policy covers losses that happen during the time you have the policy, regardless of when you file a claim. It is designed to protect you against long-tail events – incidents that could cause injury or damage years after they occur. For example, a chemical spill is a long-tail event because it often takes decades to produce visible injuries or disease.
Occurrence-based policies will protect you against such events even if:
- Many years pass before injuries or damages become known.
- You have switched to another insurance policy or insurer.
- You have canceled your insurance and not replaced it with another one.
A few examples of occurrence-based policies are general liability insurance, commercial auto insurance, and commercial umbrella insurance.
Get insurance for your business with Insureon
Complete Insureon’s easy online application today to compare insurance quotes from leading insurance companies. You can also consult with an insurance agent on your business insurance needs. Once you find the right policy for your small business, you can begin coverage in less than 24 hours.
