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 Posted: Mon Apr 05, 2010 9:28 am Post subject: Claims-made vs. Occurrence-based policies |
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The only difference that I've known between claims-made and occurrence-based policies are that the claims-made policies are much cheaper than the latter. Are there any other notable differences between the two?
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Fruitfly
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| Posted: Tue Apr 06, 2010 7:36 am Post subject: |
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| A claims-made policy is a bit different than the occurrence policies. A claims-made policy covers you for claims that you've filed within the policy period. For occurrence policies it's only about the time when the loss has actually occurred. It has got nothing to do with the time when you've reported the loss. |
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steven
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| Posted: Wed Apr 07, 2010 7:58 am Post subject: |
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Yes, the premium cost of occurrence policies can even be more by as much as 50%. With a claims-made policy your savings will surely be much bigger in the long run.
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sil
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| Posted: Thu Apr 08, 2010 5:11 am Post subject: |
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Ya'll better be careful when posting your preferences about claims made vs. occurrence-based commercial contracts. There's a world of difference between the two, the least of which of them is the difference in premium.
Remember...you get what you pay for.
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InsTeacher
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| Posted: Fri Apr 09, 2010 11:10 am Post subject: |
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| There's only one risk with the occurrence policies. We have to be sure of our policy limits. If our policy limits are not adequate enough to cover us from future risks, we may land up in trouble. |
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roddick
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| Posted: Sat Apr 10, 2010 6:33 am Post subject: |
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If you've obtained an occurrence policy from a carrier who has a lower rate, then you may lose insurance coverage if the carrier turns insolvent after 3 years of your policy expiry. Any claim that you make during the fourth year wouldn't be covered.
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anonymous00
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| Posted: Sun Apr 11, 2010 8:13 pm Post subject: |
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| Quote: | | If you've obtained an occurrence policy from a carrier who has a lower rate, then you may lose insurance coverage if the carrier turns insolvent after 3 years of your policy expiry. Any claim that you make during the fourth year wouldn't be covered. |
Not quite sure what this means. Occurrence based contracts are almost always more expensive if you're comparing apples to apples. The coverage scope alone increases the premium. I have no idea what you're referring to regarding insolvency and the 4-year thing. As well, "you may lose your insurance coverage if the carrier turns insolvent after three years of your policy expiry." If the policy has expired 3 years ago, then the coverage with that carrier is no longer in force...then who cares if the company goes belly-up? Your coverage was gone with that carrier three years ago!
Insolvent is insolvent regardless of when it occurs. Every state has a Guaranty Association which takes over in the even of insolvency or pending insolvency. It's the insurance version of the FDIC, and all authorized carriers are required to be a member of their respective Guaranty Association.
So, I have absolutely no idea what you mean when you refer to this stuff. Could you possibly clarify?
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InsTeacher
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