In an occurrence-based policy, the event that triggers coverage is the actual happening of injury or damage during the policy period. That is, coverage is triggered by the happening of the event. The portion of the insuring agreement that expresses this trigger reads as follows:
1. Insuring Agreement.
a. We will pay those sums that the insured becomes legally obligated to pay as damages because of "bodily injury" or "property damage" to which this insurance applies. We will have the right and duty to defend any "suit" seeking those damages. We may at our discretion investigate any "occurrence" and settle any claim or "suit" that may result...[See specimen policy for remainder of text]
b. This insurance applies to "bodily injury" and "property damage" only if: (1) The "bodily injury" or "property damage" is caused by an "occurrence" that takes place in the "coverage territory"; and (2) The "bodily injury" or "property damage" occurs during the policy period.
Please contact us if you would like to read a specimen policy in it's entirety, or if you have any questions regarding how occurrence-based policies work. Note that you should not replace a claims-made policy with an occurrence-based policy without first speaking to us. A gap in coverage may result.
