When it comes to protecting your business, insurance policies can be confusing. There are two different types of policies, an occurrence policy and a claims-made policy.
An occurrence policy is a type of liability plan that keeps the policy holder protected against a claim that may be brought forward in the future.
For example, a business owner took out an occurrence policy in 2004 and the policy ended in 2010. Now, a person has come forward making a claim against your business for services conducted in 2007. Since the claim being made is from 2007 when you were paying for the policy, you’re still covered by tge occurrence policy.
Occurrence coverage provides coverage for when the act or accident occurred rather than when it is reported. This type of coverage can provide long-term coverage for business owners and anyone who performs work for others in which a claim may be made against them now or in the future.
At Arguello, Hope & Associates we understand how confusing insurance policies can be and how signing up for the wrong one could lead to problems in the future. Our knowledgeable insurance attorneys can help guide you in deciding on the right type of protection to protect you and your business.
For further assistance on your insurance policy, fill out the ‘FREE CASE REVIEW’ form to your right.
Claims-Made vs. Occurrence Policy
When trying to decide what type of coverage may be right for your business, there is another type of policy available, a claims-made policy.
Some differences between claims-made and occurrence policies include:
- Cost – Depending on the carrier, an occurrence policy could cost up to 50% more than a claims-made policy.
- Coverage – Even when the premiums for the occurrence policy stop, the coverage continues.
- Additional Need of Coverage – With a claims-made policy an individual may have to purchase “tail-end coverage” for claims that may be made after the policy expired.
- Limits of Liability – With a claims-made policy the amount of liability being paid for currently is what is used for a settlement or judgment no matter if you were paying less when the initial claim occurred. With an occurrence policy the policy in tact when the claim is being made for is what will be used, even if you are paying for more liability coverage now.
An occurrence policy is best when looking to ensure that whatever work being performed is covered in the case of an accident. It should be noted that sometimes if a business chooses a low-rate and coverage policy the insurance company could go out of business in the future and thus leave the policy holder responsible for claims made against them.
Common Types of Occurrence Policy Claims
A claim may be made against the party responsible for all types of accidents. Typically these types of coverage revolve around poor work done at a business, failure to nifty others of hazards, and so forth.
Failure to act, failure to supervise, failure to discover a defect
Some common types of accidents that could be covered by an occurrence policy include:
There are also some types of occurrences that are not covered by this type of policy, including:
- Worker Injuries
- Damage to Business Property
- Automotive Liability
Most of those types of occurrence claims are covered by a third party insurer, victims must be sure that the claim they are trying to make does not need to be handled by a different insurance policy.
Contact Our Houston Insurance Claims Attorneys Today
If you or a loved one has been injured or experienced damages as a result of another party’s negligence or carelessness, the victim may be entitled to make an occurrence policy claim. Our knowledgeable insurance claims lawyers can provide comprehensive legal counsel on your situation and will help guide you through the entire litigation process.
At Arguello, Hope & Associates we are dedicated to helping our clients deal with big insurance companies. For many years we have been assisting victims in the Houston area and also proudly serve the surrounding neighborhoods, including:
- Riverside Terrace
- Hyde Park
- Houston Heights
- Clinton Park
- ..and many more
If you have been denied insurance claims for an accident caused by a negligent or careless other party, Arguello, Hope & Associates are ready to fight for your rights, contact us at 1-888-CLAIM-68 (1-888-252-4668) to get connected with one of our insurance claims lawyers.
We can also be contacted online, simply fill out the ‘FREE CASE REVIEW’ form at the top right hand corner of this page to get your case reviewed immediately – it’s 100% free and confidential.