Glossary

Occurrence-based policy

An occurrence-based policy covers any incident that happens during the policy period, regardless of when the claim is filed. Damage in January that is claimed in June — even after the policy expires — is still covered.

By Andrew Bate, Co-founderReviewed by Stuart BateUpdated September 14, 2026

Why this matters for property managers

Guest injury claims often arrive months after checkout. Occurrence coverage means switching carriers or ending a program does not strand those claims. General liability is nearly always written this way; professional liability usually is not.

Worked example

A guest slips on a deck in July. The demand letter arrives the following March, by which time the manager has moved its liability to a new carrier. Under the occurrence policy that was in force in July, the old carrier defends and pays; the new one is not involved.

Occurrence vs. claims-made for a property management company

A management company carries both kinds. General liability, the per-property liability in a damage program, guest injury and workers' compensation are occurrence policies: the policy in force on the day of the incident pays, however late the claim arrives, so changing carriers never strands an old incident. E&O, D&O and cyber are claims-made: the policy in force when the claim is reported pays, and only for incidents after the retroactive date. The practical rule is to check which kind each line is before switching carriers, keep the retroactive date on the claims-made lines, and never let an occurrence policy lapse between renewals, because there is no tail to buy back an uncovered gap.