Occurrence Policy
What Is an Occurrence Policy?
An occurrence policy covers claims that arise from incidents that happen while your coverage is active, even if the claim is reported after the policy ends. If the claim was triggered during your policy period, it may be eligible for coverage.
Think of an occurrence policy as coverage providing long-term peace of mind — you can file months or years later, as long as the event originally happened when your policy was “on.”
Why It Matters for Beauty and Bodywork Professionals
Occurrence form policies matter especially for beauty and bodywork professionals because claims can pop up at any time. The work you perform during your policy period is protected indefinitely, because you can file a claim whenever you need to.
- Clients may report a reaction or injury long after an appointment; occurrence coverage applies to the date of the incident, not when they make a complaint
- If you switch insurers, you don’t have to manage additional reporting dates — you simply know you’re covered for that policy term
- Many studios, landlords, and event organizers prefer occurrence-form coverage because it offers a more flexible claims-filing window
Claims-Made vs Occurrence Policy: What’s the Difference?
A claims-made policy only covers claims that happen and are filed during the policy period, while an occurrence policy lets you file a claim for covered events even after your policy ends.
Swipe →
| Feature | Occurrence Policy | Claims-Made Policy |
|---|---|---|
|
Coverage Trigger |
The incident happened during the policy term |
A claim is first made during the policy term (and after the retroactive date) |
|
If a Claim Arrives Later |
Generally, still covered by the old policy in force when it happened |
Not covered after the term unless you purchased tail (extended reporting) |
|
Switching Carriers |
Usually simple; no retroactive date to manage
|
Must maintain your retro date and consider tail when you leave |
|
Quick Example |
Chemical peel reaction in May (while covered), client sues next February; the May policy responds |
Chemical peel reaction in May (while covered), client sues next year (policy lapsed); the May policy won’t respond
|
What to Check Before You Buy
An occurrence-form policy is preferred in the beauty and bodywork industry. Once you find one that works for you, be sure to also check:
Limits
- Verify that per-occurrence and aggregate limits meet your contract requirements
- Confirm sublimits like fire legal liability insurance and medical expenses
Exclusions and Endorsements
- Make sure services you actually provide aren’t excluded (e.g., microcurrent facials, cupping, or laser treatments)
- Confirm you can add the required additional insured wording by endorsement
Where to Find “Occurrence” on Your Policy Documents
Double-check your occurrence coverage by looking at your:
- Declarations page: Look for “coverage form: occurrence” or similar language
- Policy form: Wording will reference “occurrence” as the trigger for bodily injury or property damage
- Certificate of insurance (COI): Often shows “General Liability: Occurrence” in the coverage description; if the COI isn’t clear, confirm against the policy
Additional Resources
Related Terms
Claims‑Made Policy
Retroactive Date
Declarations Page (Dec Page)
Policy Period
Coverage Details
Certificate of Insurance (COI)
Per-Occurrence Limit
Aggregate Limit
