Occurrence policy
A liability policy that responds based on injury or damage occurring during the policy period, even when the claim is made later, subject to the policy's actual terms and exclusions.
An occurrence policy is triggered by an injury or damage occurring during its policy period. The claim can arrive later. Texas’s Department of Insurance uses that distinction to contrast occurrence policies with claims-made policies, which add a reporting-time requirement.
This does not mean every later claim is paid. The coverage grant, definitions, exclusions, conditions, and limits remain controlling. It does mean the date of the alleged injury or damage is usually the starting point for identifying the potentially relevant occurrence policy.
General liability is commonly discussed through this trigger, while many professional-liability policies are written on a claims-made basis. See claims-made versus occurrence for why a business should identify the trigger before comparing policy labels.
Sources
- Primary source: Texas Department of Insurance — Commercial general liability insurance — State regulator explanation contrasting occurrence coverage with claims-made coverage.