8.3 Occurrence vs. Claims-Made Triggers

What a Coverage Trigger Does

A coverage trigger determines WHICH policy responds to a loss — critical for long-tail liability where injury surfaces years after the act. ISO writes the CGL on two forms:

• Occurrence form (CG 00 01) — responds if the bodily injury or property damage occurs during the policy period, no matter when the claim is filed (even decades later).
• Claims-made form (CG 00 02) — responds only if the claim is first made during the policy period (subject to the retroactive date and any reporting tail).

The Occurrence Trigger

Under the occurrence form, what matters is when the injury happened, not when suit is brought. Advantages: simple, no gaps after the policy ends. The downside for insurers is the long tail — an asbestos exposure in 1985 can trigger the 1985 occurrence policy when a claim arrives in 2026, which is why occurrence forms are used for general liability and most personal lines (Homeowners, PAP).

The Claims-Made Trigger and Its Dates

Claims-made coverage applies only if BOTH conditions are met:

1. The injury occurred on or after the retroactive date, and
2. The claim is first made during the policy period (or extended reporting period).

Key elements:

• Retroactive (retro) date — the earliest date an injury can occur and still be covered. Anything before it is excluded. Advancing the retro date creates a coverage gap.
• Extended Reporting Period (ERP / "tail") — extends the time to report claims after the policy ends.
  • Basic tail — automatic; a short mini-tail (60-day report window) plus a midi-tail (claims reported within 5 years for injuries during the policy).
  • Supplemental tail — must be purchased; provides UNLIMITED time to report.

Claims-made is used for professional liability / E&O, D&O, and medical malpractice because it limits the insurer's long-tail exposure.

Side-by-Side

Trap: A claims-made insured who switches carriers or retires WITHOUT buying a supplemental tail has a gap — old injuries reported later are uncovered. Always advise the tail.

Tail and Nose Coverage

When a business leaves a claims-made program it faces a gap for incidents that already happened but have not yet generated a claim. Tail coverage (Supplemental Extended Reporting Period, ERP) extends the time to report claims after the policy ends — a basic ERP is automatic and short (often 60 days run-off plus a 5-year window for incidents already noticed), while a supplemental ERP is purchased for an additional premium and can be unlimited. Nose coverage is the reverse: a new claims-made insurer agrees to honor the prior retroactive date, eliminating the need to buy tail from the old carrier.

How the Retroactive Date Works

A claims-made policy covers a claim only if both the injury occurred on or after the retroactive date and the claim is first made during the policy period (or ERP). Advancing or "laser-ing" the retroactive date creates a gap for older exposures — a heavily tested trap.

Side-by-Side Recap

Claims-made forms dominate professional liability, D&O, and EPLI; the CGL is offered in both versions, with occurrence the default for most general liability.

Reading a Trigger Question

Trigger questions give you dates and ask whether a claim is covered, so build a timeline. Under an occurrence form the only date that matters is when the injury happened; if it falls within the policy period the claim is covered even if it is reported years later, which is why occurrence forms carry long-tail exposure. Under a claims-made form two dates must both line up: the injury must occur on or after the retroactive date, and the claim must be first made and reported during the policy period or an extended reporting period.

Advancing the retroactive date or letting it lapse creates a gap, and leaving a claims-made program without buying tail or arranging nose coverage strands prior exposures. When a stem lists a retroactive date, an occurrence date, and a claim date, lining them up against these rules resolves the answer directly. When a stem omits one of the three dates, infer it from the form type: an occurrence form ignores the claim date entirely, while a claims-made form fails the moment the injury predates the retroactive date or the claim is reported after the policy and any extended reporting period have lapsed.