Definition Of Claims Occurrence Basis Liability Coverage In Insurance

Definition of "Claims occurrence basis liability coverage"

Joanne Jacobs, Real Estate Agent Charles Rutenberg Realty

Method of determining whether or not coverage is available for a specific claim. If a claim arises out of an event during the period when a policy is in force, the insurance company is responsible for its payment, up to the limits of the policy, regardless of when the business submits the claim. Experts often suggest that it is extremely important, when purchasing a property and casualty insurance policy, to determine if claims are paid on a claims made basis or on a claims occurrence basis.