Claims Occurrence Form

Definition - What does Claims Occurrence Form mean?

A claims occurrence form is a type of liability insurance in which the insured is covered for a damage-causing event that happened during the policy period, even if the claim is made after the period of coverage is over. This is especially important for professions or industries where the effect of loss or damage can manifest itself long after what caused it.

Claims occurrence forms are an alternative to claims made forms, which only allow claims to be reimbursed if both the loss and the filing of the claim took place during the policy period.

A claims occurrence form is also known simply as an occurrence form.

Insuranceopedia explains Claims Occurrence Form

Many people view claims occurrence forms as the better option between the two different types of insurance because it allows the policyholder more freedom in terms of when they can file the claim. With a claims made form, the policyholder could get stuck shouldering the full burden of the loss if he or she files the claim too late. Therefore, people who have claims occurrence forms do not have to worry as much about timing when they file their claims.

As an example, Dr. Smith bought an occurrence form of liability protection for a period of five years that started coverage in December 2013 and ended in December 2017. In January 2018, a patient made a claim about the painkillers Dr. Smith prescribed in November 2017, alleging they caused stomach ulcers a month after taking them. The insurance company can still pay for damages in behalf of Dr. Smith, even if the policy period had ended, because what caused the damage happened during the policy period. In other words, a claims occurrence form protects a person or entity for life for a damage or loss that occurred during a policy period.

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