What is the difference between the loss sustained and Discovery versions of the Commercial Crime Coverage form?
Under a “loss discovered” form, coverage applies to loss that is discovered during the policy period regardless of when the act/ loss took place, which makes these forms preferable. Under a “loss sustained” form, coverage applies when a loss is actually sustained.
What is the difference between claims made and occurrence?
An occurrence policy has lifetime coverage for the incidents that occur during a policy period, regardless of when the claim is reported. A claims-made policy only covers incidents that happen and are reported within the policy's timeframe, unless a “tail” is purchased.
What is a loss sustained form?
The loss sustained form covers loss that occurs and is discovered during the policy period or within one year after policy expiration. This form has been in use the longest.
Which is cheaper claims-made or occurrence?
In short, occurrence-based policies provide ample coverage as long as you keep renewing them. For this privilege, you'll generally pay more than you would for claims-made policies. With claims-made policies, the amount of coverage you purchase must last for as long as you keep your policy.
What is an example of an occurrence in insurance?
An occurrence is a single event that results in a single insurance claim. In home insurance, common occurrences include break-ins, fires, burst pipes, or even a dog bite that leads to a liability claim. Each incident for which a homeowner could make an insurance claim is one occurrence.
What is the purpose of the claims-made form?
What Is a Claims-Made Policy? Insurance companies commonly write policies on a claims-made form. This means your insurer helps cover claims filed during your policy period.