Reveal Hidden Secrets in Claims vs Occurrence Policies

The Financial Implications

When considering these policies, cost is a significant factor. Claims-made policies often have lower initial premiums, making them attractive for those seeking immediate cost savings. However, they may require the purchase of "tail coverage" if you switch insurers or retire, to cover claims reported after the policy ends. Occurrence policies typically have higher premiums but offer peace of mind with long-term protection without the need for additional coverage. Understanding these financial implications helps you weigh the short-term savings against long-term security.