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Claims-Made Policies Versus Occurrence Policies For Contractors Part 2

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Claims-made policies and occurrence policies are the two main types of liability policies and have key differences. In part one of this article, a Denver contractor lawyer explained claims-made policies and retroactive reporting periods that can be added to them to help cover any latent lawsuits. While claims-made policy payments are generally a little less expensive, they do have limitations when it comes to reporting periods after the policy has expired.

In this article, a Denver contractor attorney explains the way occurrence liability policies work.

Occurrence Policy

In contrast, claims made to an occurrence policy will be covered as long as the incident happened while the policy was effective. An occurrence policy is usually more expensive due to the lack of a reporting limit after the policy ends. To have an occurrence policy cover the claim, the incident needs to:

  • Take place on the insured property
  • Happen while the policy is in place
  • Be unknown before the policy begins

If a visitor touring a jobsite tripped in December and sued in March, even if the contractor’s occurrence-claim policy ended in January, that claim would be covered. A claims-made policy would cover the suit because it happened inside of the policy effective dates, even though it was not reported during this time period.

Whether you have a claims-made policy or an occurrence policy, if you get involved in a construction lawsuit, you’ll need a representative with experience in the field. Cotney Construction Law employs knowledgeable contractor lawyers who are familiar with insurance law.

If you would like to speak with one of our Denver contractor attorneys, please contact us.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.