Claims-made and Occurrence are two types of insurance policies that differ in how and when they provide coverage. An 'Occurrence' policy covers incidents that happen during the policy period, regardless of when the claim is filed. On the other hand, a 'Claims-made' policy covers claims made during the policy period, even if the incident occurred at a different time, typically requiring the incident to have happened after a specified retroactive date.

Let's say you operate a painting contracting business. Under an Occurrence policy, if a paint job done last year causes damage this year, the policy you had last year would cover the claim. With a Claims-made policy, it's the current policy that would respond, as long as the claim is made during its active period and the incident occurred after the retroactive date set in your policy."

Choosing between Claims-made and Occurrence policies involves:

• Considering the nature of your work and the likelihood of delayed claims.
• Understanding the policy periods and how they align with your business risks.
• Evaluating the financial implications, as Occurrence policies often have higher premiums due to their extended coverage period.