Insurance & LiensQuestion 1524 of 1605
A general liability policy written on a 'claims-made' basis (as opposed to 'occurrence') generally covers a claim only if:
a.The claim is both made and reported during the policy period (or extended reporting period)
b.The premium was paid in cash
c.The injury occurred during the policy period, regardless of when the claim is made
d.The claimant served a preliminary notice
Explanation
A claims-made policy responds when the claim is made (and reported) during the policy period or any extended reporting period, regardless of when the underlying event occurred. An occurrence policy responds based on when the injury/damage happened, even if the claim is made years later.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)