What does "occurrence" coverage in liability insurance cover?

Occurrence coverage in liability insurance is designed to protect the insured against claims for incidents that happen during the policy period, no matter when the claim itself is filed. This means that if an event occurs within the duration of the policy, even if the resulting claim is made after the policy has expired, the insurance will still cover that claim. This feature provides a significant advantage for the insured, as it ensures that they are protected from unforeseen liabilities stemming from past incidents, as long as those events occurred while the policy was active.

This coverage type is particularly important in situations where claims may arise long after the incident, such as in certain injury claims or property damage. By focusing on the timing of the occurrence rather than the timing of the claim, occurrence coverage provides broader and more stable protection for policyholders.