Policy forms
Occurrence vs. claims-made: which clock the policy runs on
Two liability forms run on different clocks. Texas's insurance department, read July 26, 2026, describes occurrence policies as covering damage occurring while the policy is in force regardless of when the claim is made, and claims-made policies as requiring the damage and the report to both fall inside the period.
Two policies can show the same limits, the same price and the same carrier, and still answer a claim differently. The reason is a structural choice that rarely appears in a quote comparison: which event starts the clock.
The two forms, in the regulator's words
Occurrence policy
cover claims arising from injury or damage occurring while the policy is in force, regardless of when the claim is first made
Responds based on when the harm happened. If the injury or damage took place while the policy was in force, the policy answers for it even if the claim shows up years later.
For trade work the gap between the job and the complaint can be long. A deck stripped in spring and a dispute in autumn are the same policy year under this form.
Claims-made policy
cover claims that arise from injury or damage occurring during the policy period and reported to the insurer during the policy period
Responds based on when the claim arrives. Both the harm and the report generally have to fall inside the policy period, which means letting the policy lapse can close the door on work already done.
Under this form, stopping coverage is not only a decision about the future. Past work can stop being covered too, which is why the two forms are not interchangeable at the same price.
The same job under both forms
| Situation | Occurrence form | Claims-made form |
|---|---|---|
| Damage during the period, claim during the period | The period the damage happened responds | The current period responds |
| Damage during the period, claim two years later, policy still active | The earlier period responds | The current period responds |
| Damage during the period, claim after the policy ended | The earlier period still responds | The report falls outside the reporting window |
| What ending coverage affects | Future work | Future work and the reporting of past work |
The third row is the whole point. Under one form, work done while insured stays answered for. Under the other, the reporting window is part of the coverage, which is why a lapse is a different kind of decision.
The gap list
What the form does not change
Neither form widens what is covered
This is a question about timing, not about scope. An exclusion is an exclusion under both forms, and choosing one over the other does not add coverage for anything.
The label is not on the marketing page
Which form a policy uses is stated in the policy documents. A quote comparison that shows limits and price without stating the form is comparing two numbers and leaving out a structural difference.
Retroactive dates change the answer
Claims-made policies commonly carry a retroactive date that limits how far back the covered work reaches. Two claims-made policies at identical limits can behave differently because of it.
This page describes forms, not your policy
The descriptions come from a state insurance department's general guidance. What governs any specific situation is the wording of the policy in hand.
This is a timing question. It sits on top of the coverage question rather than replacing it.
Common questions
What is the difference between occurrence and claims-made?
They run on different clocks. The Texas Department of Insurance describes occurrence policies as covering claims arising from injury or damage occurring while the policy is in force, regardless of when the claim is first made, and claims-made policies as covering claims that arise from injury or damage occurring during the policy period and reported to the insurer during the policy period.
Why does the difference matter for trade work?
Because the gap between doing a job and hearing about a problem is often long. A surface treated in spring and a dispute raised in autumn are the same policy year under an occurrence form. Under a claims-made form the report has to land inside the period too, so the timing of the complaint becomes part of the coverage question.
What happens to old jobs if I cancel a claims-made policy?
That is the practical consequence of the second clock. Because the form generally requires the claim to be reported during the policy period, ending coverage can affect work already completed and not just work not yet done. This is why the two forms are not interchangeable even at the same limit and price, and why arrangements exist to extend the reporting window.
Which form is general liability usually written on?
Commercial general liability for small trade businesses is commonly written on an occurrence basis, while claims-made is more familiar in professional liability lines. Commonly is not always: the form is stated in the policy itself and that is where it should be confirmed rather than assumed.
How do I tell which one I have?
The declarations page normally states it, and the coverage form title often says it outright. If the words claims-made appear anywhere on the declarations, the reporting clock applies to you, and the significance of a lapse is different from what it would be on an occurrence form.
How this page is sourced
Both descriptions are quoted from the Texas Department of Insurance's guidance on commercial general liability, read on July 26, 2026. A state regulator was chosen over a carrier explanation on purpose: the regulator has no product riding on the definition.
We publish general educational content and cannot review anyone's specific situation or policy. Which form your policy uses is stated in your own declarations.
Related: what the limits on that same declarations page mean is on liability limits. Sourcing standard on methodology.