What is the difference between occurrence and claims made?

The key difference between occurrence and claims-made insurance policies lies in the timing of coverage. An occurrence policy covers claims for incidents that happen during the policy period, regardless of when the claim is filed, even if it is reported after the policy has expired. In contrast, a claims-made policy provides coverage only for claims that are made during the policy period, meaning the policy must be active both when the incident occurs and when the claim is filed. This distinction can significantly impact coverage and liability for insured parties.