Liability coverage that protects an accident occurring during the policy period, regardless of when the claim is submitted, is which type of coverage?

Liability coverage that protects an accident occurring during the policy period, regardless of when the claim is submitted, is which type of coverage?

• A. claims-made coverage
• B. occurrence basis coverage
• C. cause-based coverage
• D. aggregate coverage

Answer: (C)

Occurrence-based liability coverage attaches when the event causing the damage or injury occurs during the policy period, and it pays the claim even if the suit is filed later. In other words, the timing of the claim doesn’t matter as long as the incident happened while the policy was in effect. This is why an accident that happens during the policy period is covered, regardless of when the claim is submitted. By contrast, claims-made coverage is triggered by when the claim is reported, not when the event occurred, and aggregate coverage refers to a limit that applies to all claims within a policy period rather than the timing of the event.

Occurrence-based liability coverage attaches when the event causing the damage or injury occurs during the policy period, and it pays the claim even if the suit is filed later. In other words, the timing of the claim doesn’t matter as long as the incident happened while the policy was in effect. This is why an accident that happens during the policy period is covered, regardless of when the claim is submitted. By contrast, claims-made coverage is triggered by when the claim is reported, not when the event occurred, and aggregate coverage refers to a limit that applies to all claims within a policy period rather than the timing of the event.