What is the difference between an occurrence form and a claims-made form, and which is commonly used for CGL?

• A. Occurrence covers events during policy period; claims-made covers claims made during period with retroactive date; CGL is typically an occurrence form.
• B. Occurrence covers only after policy expiration.
• C. Claims-made forms are used for CGL by default.
• D. Both forms are identical in coverage rules.

Answer: (A)

Coverage is determined by when the event or the claim is triggered. An occurrence form covers injuries or damages that happen during the policy period, and the claim can be made later—coverage follows the time the event occurred, not when the claim is filed. A claims-made form provides coverage only if the claim is made during the policy period, and it often uses a retroactive date to cover acts that occurred after that date but before or during the policy period. For Commercial General Liability (CGL), the standard practice is to use an occurrence form, because it protects against events that occur while the policy is in force, even if the claim is reported after the period ends. The other statements misstate the triggers or default usage: occurrence is not limited to after expiration, claims-made is not the default for CGL, and the forms are not identical in coverage rules.