An occurrence policy is a type of liability insurance policy that is
triggered when the injury or damage occurs, regardless of when the claim is reported or paid. This means that coverage applies to claims made during the policy period, as well as claims made after the policy period has ended, as long as the underlying event occurred during the policy period.
EXAMPLE:
An insurance policy covering a construction company is in effect from January 1, 2023, to December 31, 2023. If a worker is injured on a construction site during the policy period but the claim is not reported or paid until January 2024, it would still be covered under the policy since the injury occurred during the policy period.