Which type of liability insurance protects against claims that occur during the policy period?

Which type of liability insurance protects against claims that occur during the policy period?

• A. Claims-Made
• B. Occurrence
• C. Personal
• D. Umbrella

Answer: (B)

In this type of liability coverage, the key factor is when the event that leads to a claim actually occurred. An occurrence policy provides protection for claims arising from incidents that happened during the policy period, no matter when the claim is finally filed. That means a damage or defect that occurred while the policy was active is covered even if the claim surfaces years later. This is especially important for a landscape contractor, where problems like soil or drainage issues might become evident long after work is completed. By contrast, a claims-made policy is triggered by when the claim is made, not when the incident happened, and can require tail coverage if you switch policies. Personal liability and umbrella describe broader types or layers of protection, but the defining trigger for this question is the timing of the occurrence.

In this type of liability coverage, the key factor is when the event that leads to a claim actually occurred. An occurrence policy provides protection for claims arising from incidents that happened during the policy period, no matter when the claim is finally filed. That means a damage or defect that occurred while the policy was active is covered even if the claim surfaces years later. This is especially important for a landscape contractor, where problems like soil or drainage issues might become evident long after work is completed. By contrast, a claims-made policy is triggered by when the claim is made, not when the incident happened, and can require tail coverage if you switch policies. Personal liability and umbrella describe broader types or layers of protection, but the defining trigger for this question is the timing of the occurrence.