Claims Made Insurance Jacksonville FL

Small business insurance should include liability insurance. Types of coverage include occurrence-made insurance and claims made policies. There are differences in the two which are important to know about.

A claims made policy is coverage for claims made in the period the policy is active. This type of liability insurance is active as long as the business continues to pay, as it offers superior protection when compared to claims made policies. However, it is also the more expensive of the two types of insurance coverage, specifically because it does offer better protections.

With an occurrence policy, you are covered for claims that result from incidents which happen during your policy period, even if the claim is made outside the time of active coverage. This means, if someone tries to make a claim against your small business insurance even when coverage is not in force, the claim is covered as long as you had occurrence-made insurance during the time the incident is reported to have occurred.

With claims made policies, you have to continue to renew your policy in order for the coverage of the claim to remain retroactive. For example, let’s say you had an incident occur on October 2 of 2010. If you had occurrence-made insurance at the time, but no longer have an active policy in force, the incident would be covered under your liability insurance. However, with claims made policies you would have to have an active insurance policy as well as had service which continued uninterrupted on your policy during that date until the present.