Insurance & LiensQuestion 1525 of 1605
An 'occurrence-based' CGL policy responds to a claim based on:
a.When the lawsuit is filed
b.When the contractor's license was issued
c.When the bodily injury or property damage took place, even if the claim is made after the policy expires
d.When the premium is paid
Explanation
An occurrence policy covers injury or damage that happens during the policy period, even if the claim is asserted years later. This 'long tail' protection is valuable for construction defect exposure that surfaces after a project is complete.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)