Occurrence coverage is lifetime coverage for the policy period. This means that if there is a claim or suit against you, as long as you were insured at the time of the incident or treatment that resulted in the claim or suit, this policy will still apply. The premium will also remain the same every year and each year will be secured with its set of limits for whichever option was chosen (i.e. $1 million/ $3 million).
A Claims-Made policy will cover claims that occur while the policy is in effect. Coverage starts with a lower premium which increases as the liability increases. If policy holders wish to extend the amount of time they can report a claim after the policy expiration date, they will need to purchase what is known as a “tail coverage” or an “Extended Reporting Period”.