Filing an insurance claim may be overwhelming — and keeping track of the complex insurance jargon on top of that can contribute to that stress. For example, do you know the difference between a claims-made policy and an occurrence policy? A question like this might cause some head-scratching, and understandably so.
At GuideStone Property and Casualty®, we want to help guide and equip you to make the best decision for your ministry, which is why we want to explain both claims-made and occurrence liability policies. So, what is the difference between the two policies?
The main difference between claims-made and occurrence policies is how the coverage applies —knowing when your policy is effective and when it expires determines if the incident will be covered or not. This clarity allows your ministry to be protected with lessened financial impact and minimized burdens.
Claims-made liability policies will generally be easy to find if you look at the Declarations pages from your Commercial Liability Insurance policy. It’s frequently listed at the top of the first Declaration page with the words “This is a Claims-Made Policy.” It is also found in what is often called “Professional Liability,” or the liability assumed because of a profession. In the ministry context, we generally see this in the following six types of liability:
At GuideStone®, through our alliance with Brotherhood Mutual Insurance Company, all liability policies are written as occurrence forms. We exclusively provide occurrence coverage because this coverage applies purely for the ministry’s benefit. Our goal is to keep your ministry protected from legal action for years to come, regardless of when the claim is filed. In partnering with us, you experience an insurance provider who understands and provides coverage to help protect your ministry from specific issues that you may face.
If you have questions about your current policies, please reach out, and we will be happy to find out what type of coverages you currently have and advise you on the next steps. Visit us at GuideStonePropertyCasualty.org/SafetyToolKit or give us a call at 214-720-2868.
*Tail coverage can be purchased from the company offering claims-made to extend the reporting period.