New York State Asbestos Investigator Practice Exam

What type of insurance covers claims about incidents that occurred during the coverage period?

1. Liability insurance

2. Occurrence insurance

3. Errors and omissions insurance

4. Workers compensation insurance

The correct answer is: Occurrence insurance

Occurrence insurance is designed to cover claims for incidents that occur during the policy coverage period, regardless of when the claim is actually reported or when the damages are discovered. This means that if an injury or damage arises during the time the insurance policy is in effect, the insurer will provide coverage even if the claim is made after the policy has expired. For example, if a property owner discovers asbestos-related illnesses years after renovation work was completed, and that work was done while the occurrence insurance was active, the policy would likely cover claims arising from those incidents. This aspect makes occurrence insurance particularly valuable for long-term liabilities that can arise long after the insured period. In contrast, liability insurance in general may not specify claims reporting requirements and can refer to various forms of liability coverage, while errors and omissions insurance specifically addresses mistakes made in professional services and may not encompass broader incidents. Workers’ compensation insurance deals primarily with employee injuries related to their work environment and does not cover general liability issues.