Two policies can carry the same limit and respond to a late claim very differently, because of one word on the form. Occurrence or claims-made. For contractors, whose work can produce claims long after a job wraps, that word earns its keep.
What the two triggers mean
An occurrence policy generally responds based on when the loss happened. If damage occurs while the policy is in force, that policy is generally the one that looks at the claim, even if the claim itself arrives years later. A claims-made policy generally responds based on when the claim is made and reported, within the dates and terms the policy sets. One looks to the event, the other looks to the filing. That is the whole distinction, and it drives everything else.
Why most contractor GL is occurrence
Most contractor general liability is written on an occurrence basis, and there is a good reason. Construction problems are slow. Water intrusion, movement, a defect that shows up under stress, these can surface long after the crew has moved on. An occurrence trigger ties the response to when the damage happened, which keeps old work connected to the policy that was in force at the time. For contractors, that generally lines up with how claims actually behave.
What claims-made would change
If your general liability were claims-made instead, the timing of the filing would matter, and the policy would need to be active, or backed by the right reporting arrangement, when the claim comes in. That adds moving parts. You have to keep the coverage continuous, watch the retroactive date, and think about a tail if the policy ends. None of that is disqualifying, and some professional lines are written this way for good reasons. It is simply more to manage, which is part of why occurrence tends to be the contractor default.
The completed operations tail angle
Completed operations is the part of general liability that speaks to your finished work. Because construction claims can arrive late, completed operations coverage is a big deal for contractors. On a claims-made form, an extended reporting period, often called a tail, generally lets claims be reported after the policy ends for incidents that happened while it was active. On an occurrence form, that late claim generally looks back to the policy that was in force when the damage happened, so the tail concept works differently. If you ever switch forms or carriers, this is exactly where to slow down and confirm old work stays covered.
Which one fits
For most contractors, occurrence general liability is the natural fit, and it is what the market usually offers. Claims-made shows up more in professional and specialty lines, and it can be right in those contexts. The practical move is to know which trigger you actually have, understand how your completed operations respond, and treat any carrier or form change as a moment to check for gaps rather than assume continuity.
Questions to ask your advisor
- Is my general liability written on an occurrence or claims-made basis?
- How does my policy handle completed operations for work I have finished?
- If I switch carriers, does my old work stay covered under either form?
- On a claims-made policy, would I need a tail, and when?
- Are any of my specialty coverages claims-made, and what does that require of me?
The trigger is not a technicality, it decides which policy period a late claim looks to. Most contractors are on occurrence coverage for a reason, and the reason is that construction claims take their time. Know your trigger, understand your completed operations, and be careful at every transition.
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