Occurrencepolicies cover claims on the basis of when they are incurred regardless of when they are reported. For example, an occurrence policy written for 1997 covers only claims arising out of incidents which occur in 1997 irrespective of when the claim is actually made. Claims-made policies cover claims on the basis of when they are reported. For example, a claim that is incurred in 2009 but is not reported until 2014 will be covered under the claims-made policy issued for 2014 (assuming the policy is continuously in force with a prior acts date of 2009 or previous).
A claims made policy covers events that occur:
During the policy period (on or after the retro-active date) AND are reported while the policy is still in force. If you would like the company that you have claims-made coverage through to cover your claims after the policy is not longer in force, tail coverage is required.
An occurrence policy covers events that occur during the policy period regardless of when they are reported as claims. Because it is nearly impossible to predict the cost of future claims in today’s medical malpractice environment, occurrence policies have become nearly extinct for medical malpractice coverage.