# Occurrence versus claims-made

Whether a policy pays for when it happened or for when you claim.

The other form, occurrence, covers whatever happened during the term whenever the claim turns up, and the difference decides who carries the years before closing. A claims-made policy that ends at closing leaves everything the business did before it uninsured the moment the policy lapses, and the thing that surfaces after a sale is usually the thing nobody knew about. Professional liability, employment practices and directors and officers cover are commonly written this way, and [general liability](https://searchspheresource.com/glossary/general-liability-insurance) commonly is not, so the answer is per policy and the seller's broker can state it in a sentence. Ask which form each policy is before pricing anything, because the tail exists only for this one and its cost belongs in the deal and not in the first year of operating.

In numbers: A claim reported a month after a policy ends is 100% uninsured under this form, however long the business had been paying for it.

Source: https://searchspheresource.com/glossary/occurrence-versus-claims-made
Not dated: A definition is editorial: what a term means, why it matters, and an example. None of it reads a source that can go stale, so there is no date to take and a stamped one would be the build time wearing a costume.

Site index for machines: https://searchspheresource.com/llms.txt