Which of the following commercial liability policy versions covers injuries sustained during the policy period even if the claim is not actually filed until years after the policy has been canceled?

Which of the following commercial liability policy versions covers injuries sustained during the policy period even if the claim is not actually filed until years after the policy has been canceled?

• A. Claims-made form
• B. Occurrence form
• C. General liability form
• D. Property damage form

Answer: (B)

The occurrence form of a commercial liability policy is designed to provide coverage for injuries and damages that occur during the policy period, regardless of when the claim is filed. This means that if an incident takes place while the policy is active, the insured is covered even if the claim arises or is reported after the policy has been canceled. This structure is beneficial because it ensures that policyholders are protected against claims related to incidents that might not surface until many years later, offering a sense of security and peace of mind. On the other hand, a claims-made form only provides coverage if both the incident occurs and the claim is made during the policy period. This can leave gaps in coverage if a claim arises after the policy ends, hence the preference for the occurrence form in many situations.

The occurrence form of a commercial liability policy is designed to provide coverage for injuries and damages that occur during the policy period, regardless of when the claim is filed. This means that if an incident takes place while the policy is active, the insured is covered even if the claim arises or is reported after the policy has been canceled.

This structure is beneficial because it ensures that policyholders are protected against claims related to incidents that might not surface until many years later, offering a sense of security and peace of mind. On the other hand, a claims-made form only provides coverage if both the incident occurs and the claim is made during the policy period. This can leave gaps in coverage if a claim arises after the policy ends, hence the preference for the occurrence form in many situations.