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Occurence and Claims Made

Types of Coverage


Claims Made Occurrence
Limits of Coverage
Coverage will respond to incidents arising on or after the policy retroactive date and which are reported during the term of the policy.
Limits of Coverage
Coverage will respond to incidents arising from the coverage period - regardless of when those claims are reported.
Prior Acts or Retroactive Coverage
Policy may be endorsed to respond to incidents which occurred before the policy start date. also referred to as policy retroactive date.
Prior Acts or Retroactive Coverage
No Prior Acts coverage is needed.
Extended Reporting or Tail Coverage
Tail coverage responds to cover incidents that have not been reported to the company during the policy term. Some companies will offer a free tail at retirement, subject to certain conditions.
Extended Reporting or Tail Coverage
No Tail coverage is needed because incidents that occurred during the policy period are covered no matter how much later they are reported.
Cost
Claims made coverage involves a step process with premium increases over the first five years of coverage in increments proportional to the claims reporting for that experience. The initial premium and subsequent years' premium are substantially lower than an occurrence policy. By the fourth or fifth year the claims made premium reaches a mature level and premium adjustments are based on annual rate changes only.
Cost
Occurrence coverage tends to be very expensive because the insured is prepaying for tail costs whether the tail gets used or not.

Contact PIAM

  • Telephone Numbers
781-434-7525 Insurance All Departments
781-434-7398 Medigap, MMS Member Benefits, Health, Financial Services, and Long-Term Care
  • Fax Number
  • 781-434-6929