As a lawyer, I can provide legal advice on the difference between an occurrence-based policy and a claims-made policy.
An occurrence-based policy is a type of insurance policy that provides coverage for events that occur during the policy period, regardless of when the claim is made. In other words, if an incident happens during the policy period but the claim is made after the policy has expired, the policy will still cover the claim as long as the incident occurred during the policy period. This type of policy is typically used in liability insurance, such as professional liability insurance or general liability insurance.
On the other hand, a claims-made policy provides coverage only if the claim is made during the policy period. This means that if an incident occurred during the policy period but the claim is made after the policy has expired, there is no coverage. This type of policy is commonly used in malpractice insurance.
The difference between these policies lies in the coverage they provide and the scope of the claims that are covered. Occurrence-based policies typically provide broader coverage than claims-made policies because they cover incidents that occur during the policy period, regardless of when the claim is made. Claims-made policies are more limited in scope because they only cover claims that are made during the policy period.
It is important to note that there may be limitations or exceptions to the coverage provided by these policies, such as exclusions for intentional acts or criminal behavior. It is also important to carefully review the terms and conditions of the policy to fully understand the scope of coverage provided.
If you have further questions about the difference between occurrence-based and claims-made policies, or if you are considering purchasing insurance coverage, it is recommended that you consult with a licensed attorney who can provide specific legal advice tailored to your individual needs and circumstances.
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