Claims Made vs Occurrence Definitions

Experts often suggest that it is extremely important, when purchasing a property and casualty insurance policy, to determine if claims are paid on a "claims made basis" or a "claims occurrence basis".

Occurrence Basis Liability Coverage

If a claim arises out of an event during the period when a policy is in force, the insurance company is responsible for its payments, up to the limits of the policy regardless of when the business submits the claim.

Claims Made Basis Liability Coverage

If a claim is made during the time period a liability policy is in effect, an insurance company is responsible for its payment, up to the limits of the policy, regardless of when the event causing the claim occurred.

Wording from Coverage Explanations in Cap Dat ACORD Forms

We all have to learn these things for the first time. I hope this is helpful.

Here is a Brain Teaser

If a manufacturing company had an occurrence policy in effect when a product was manufactured by that company and a claims made policy in effect when the claim was made, does coverage exist under both policies?