In a commercial general liability policy, the occurrence policy may lessen the insurer's uncertainty about likely future payments because the time lag between premium payments and loss payments generally is smaller with occurrence than with claims-made.

Question

Quizplus · Accepted Answer

An occurrence policy covers incidents that occur during the policy period regardless of when the claim is made, potentially increasing the insurer's uncertainty about future payments due to the possibility of late claims. Claims-made policies, which only cover claims made during the policy period, typically offer more predictability regarding future liabilities.

In a Commercial General Liability Policy, the Occurrence Policy May