Current Articles


Contact Us

FAQ's & Info

Occurrence Policy

An Occurrence Policy responds to a claim if the claim is due to an event that occurs during the time the policy is in effect. This means the policy that responds to the claim is the policy that was in effect at the time of the event and not necessarily the policy that is in effect currently. Therefore, the limits of liability of the responding policy can either be different or the same as the current policy in place. Whenever you are deciding between an Occurrence policy and a Claims Made policy, you should consider all of this information and speak with your Broker about your options.

Example:
Occurrence policy effective date: August 1, 2008
Coverage period lasts 6 years: August 1, 2008 to August 1, 2014
Claim submitted: in 2007
Event occurred: in 2010
Occurrence Policy that responds: Occurrence policy in force in 2010 up to limits of that policy.

The insurance carrier that existed in 2010 when the event occurred may no longer be solvent in 2017 when the claim is submitted. In this case, the policy may not provide you protection against the claim in 2017. Each situation is different.

*The information found within this website is not deemed to be complete for every situation and is not a substitute for professional legal or insurance advice. It is an overview of some of the more common insurance terms and scenarios that may arise in certain instances regarding Medical Professional Liability insurance. The examples and models set forth in this website are for illustrative purposes only; to address specific concerns, please contact PLIG of SJ. Please be advised that you should always consult with the appropriate professionals to fully evaluate your individual situation as it pertains to insurance coverage. No reliance should be placed on the information contained on this website unless independently verified by PLIG of SJ. PLIG of SJ cannot, and does not, offer legal advice of any kind.

PLEASE NOTE: The Professional Liability Insurance Group of South Jersey is licensed in the state of New Jersey only and any and all content found within this website are intended solely for viewers who are licensed Health Care Providers in the state of New Jersey.

§Some links on this site will redirect your browser to independent, third-party sites with no affiliation to PLIG. Please be advised that any such links are provided solely for your convenience and information, and not as a representation of the quality or accuracy of the content of the third-party website, or an endorsement of the views contained therein.