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Understanding Claims Made vs Claims Occurring: Protecting Your Care Business

Donna Attridge



When it comes to liability insurance, two key terms often come up: Claims Made and Claims Occurring. They might sound similar, but they handle claims very differently. Here's a quick guide to help you choose the right coverage for your care business and why Claims Occurring is often the better choice.

Claims Made

A Claims Made policy covers claims notified to your insurer during the policy period, no matter when the incident happened. But the policy must be active when you report the claim, and you must stick with the same insurer with a retroactive date for continuous cover.

  • May offer lower initial premiums.
  • Can cover incidents from before the policy started if reported during the policy term and a retroactive date is included, but this can make changing insurers difficult.
  • Coverage gaps can happen if your policy lapses or is cancelled.‍
  • If you switch insurers, you might lose cover for past incidents.
  • Risk of losing cover if your insurer exits the market or raises rates.
  • You will need to notify your current broker of every potential incident to ensure it is picked up by insurers should a claim arise.
  • Proof can be more challenging, as you need to show the incident occurred during the policy period.
Claims Occurring

A Claims Occurring policy covers claims from incidents that happen during the policy period, even if reported later. This gives you protection even after your policy ends.

  • Clearer and more predictable coverage.
  • No risk of coverage gaps when renewing policies.
  • No risk of losing cover if you switch insurers or if your insurer exits the market or raises premiums.
  • Premiums might be slightly higher.
Why Claims Occurring is Better for the Care Sector

In the volatile insurance market of the care sector, Claims Made policies can leave you exposed to unnecessary risks. Quality Care Group understands the importance of solid insurance protection for care providers. That's why we prefer to work with insurers offering Claims Occurring policies, ensuring you have clear and continuous coverage.

Next Steps

If you have questions about Claims Made vs. Claims Occurring or need help choosing the right insurance for your care business, our team is here to help. Contact us today for a personalised consultation on 01273 424904.

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