Not All Policies are Equal: Occurrence Form vs Claims Made

It is not always clear which option to choose when selecting insurance, and some companies hide their policy details. We're here to clear the confusion when it comes to the different types of policies.

Occurrence Form is the industry-preferred policy type over Claims Made because you are covered for any incident that happened while your policy was in effect.

Elite Beauty Insurance offers the Occurrence form Policy so that our customers do not have to rely on their client that is suing them to file a claim in a timely manner.

Occurrence Form

Any claim filed after the policy expires will still be covered, as long as the incident took place while the policy was active.

Claims Made

Any claim filed after the policy expires will not be covered.

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"As a full-time yoga teacher, I have loved working with beYogi for my yoga insurance. They make it easy to sign up, offer great benefits, and are always there to answer my phone calls. It’s great to know that I am protected by an insurance group who knows what yoga teachers need. The coverage is amazing, and they make it a breeze to add an additional insured, which I use frequently for yoga events."

Occurrence form policy
Occurrence Form Policy

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Additional Information

Occurrence Form Policy

Occurrence Form policies only need to be active when the incident in question occurs to trigger coverage, regardless of when it’s reported. In other words, any claim filed after an occurrence policy expires will still be covered, as long as the incident took place during the policy term.

Example: Your occurrence policy expired on Nov. 30, and you did not renew it. One of your clients experienced bruising after his acupressure session on Oct. 30, at which point you were insured. The client does not file a claim, however, until Dec. 30. You report the claim to your insurance provider and find out that you’re covered—even though your policy expired a month ago!

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Occurrence Form Policy

Claims-Made policies must be active when the claim is reported in order to trigger coverage. In other words, any claim filed after a claims-made policy expires will not be covered, even if the incident in question took place while the policy was active.

Example: Your claims-made policy expired on Nov. 30. One of your clients experienced pain after her deep-tissue session on Oct. 30, at which point you were insured. However, the claim isn’t filed until Dec. 30, a month after your policy expired. You report the claim to your insurance provider only to find out that you’re not covered because the claim was made after your policy term.

Claims-Made Policy + Tail Coverage

Tail coverage, also known as extended reporting period (ERP) coverage, responds to incidents which occur during the policy term but are not reported until after the policy expires. Claims-made policyholders may purchase tail coverage in order to extend their reporting period once it ends. On average, tail coverage costs two times more than the original term cost at the time of expiration.

Example: Your claims-made policy expired on Nov. 30, and you purchased tail coverage. One of your clients filed a claim on Dec. 30, regarding a massage session you performed on Oct. 30. You report the claim to your insurance provider and find out that you’re covered—even though the claim was reported after your policy expired!