Insurance Company in Margate, FL Explains Difference Between Occurrence and Claims-Made Policies

by | Jul 14, 2023 | Insurance

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Occurrence and claims-made insurance differ in what they cover and how much they cost. Before you buy an insurance policy from an insurance company in Margate, FL, you want to find out what each type covers.

Occurrence Policies

With an occurrence policy from a place such as Del Toro Insurance, you are covered if the loss happened during the time period of your insurance. You can make a claim with your insurer as long as you have insurance at the time of the event. “Long-tail” events, which don’t lead immediately to cases or claims, are usually covered by occurrence coverage.

Claims-Made Policy

With a claims-made policy, you are only covered if you make a claim while the insurance is in effect. If an event that the insurance would cover happened after the backdate, your insurer should cover it. A claims-made policy pays for claims made while your insurance is still in effect. If you got rid of your insurance policy or forgot to pay your payment and the insurance company in Margate, FL did it for you, you won’t have any coverage.

Policy Limits

When buying insurance plans, you have to decide with your sum limit how much safety you need. This means how much coverage you have for all cases in the future. The per-occurrence limit is the most that your insurance company will pay for a single event.

When you have an occurrence policy, your total limit starts over every year. If you keep renewing your policy, it will give you enough coverage. When you buy a claims-made policy, the coverage amount must last as long as you have the policy.

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