When is an occurrence insurance policy valid?

An occurrence insurance policy is valid throughout the active coverage period for incidents that occurred, regardless of when those incidents are reported or claims are made. This means that if an event causing a loss or damage happens while the policy is in effect, the policy will cover that incident even if the claim is made after the policy has expired. This type of coverage is beneficial because it protects the insured for incidents that may not be reported immediately, allowing for ongoing protection against future claims arising from past events.

In contrast, options that suggest limitations based on when a claim is reported or when the policy began do not accurately reflect the nature of occurrence policies. Such policies typically prioritize the timing of the event over the timing of the claim, which makes them distinct from claims-made policies, where coverage is only for incidents that occur and are reported within the policy period.