Regardless of when the claim is filed, an occurrence policy covers claims that result from occurrences that take place throughout the policy period. This means that the occurrence policy will still offer coverage if an incident happens within the policy period but the claim isn’t filed until after the policy has expired. This concept is referred to as the “trigger of coverage.”
Contrarily, regardless of when the incident occurred, a claims-made insurance pays out on claims that are made throughout the policy period. This means that the claims-made policy will not offer coverage if an incident occurs during the policy period but the claim is not submitted until after the policy has ended. Both the incident and the claim have to take place during the policy period in order to be covered.
An occurrence policy offers “nose” coverage, which means that it covers incidents that happened before the policy went into force. This is one of the advantages of an occurrence policy. This makes sure there are no coverage gaps, which is crucial for professionals who are transitioning from a claims-made insurance to an occurrence policy. Coverage of the tail An additional advantage of an occurrence policy is that tail coverage is not necessary. An endorsement known as “tail coverage” extends a claims-made policy’s coverage duration over its expiration date. Claims filed after the policy’s expiration period would not be covered without tail coverage. Because they pay out regardless of when a claim is submitted for incidents that happened within the policy period, occurrence plans do not require tail coverage. NSO Tail Coverage
Policyholders who are transitioning from a claims-made policy to an occurrence policy can purchase tail coverage through NSO (Nurses Service Organization). By doing this, clients are guaranteed coverage for claims resulting from occurrences during the claims-made policy period. To address the demands of healthcare professionals, NSO also provides a range of different professional liability insurance products and endorsements.
In summary, occurrence policies provide a number of advantages versus claims-made policies. Both nasal coverage for incidents that happened before the policy went into effect and coverage for incidents that happened within the policy period are provided. Additionally, purchasing tail coverage is not necessary. When a policyholder switches from a claims-made policy to an occurrence policy, NSO gives tail coverage to make sure they are covered for any potential claims.