Certified Professional in Health Care Risk Management (CPHRM) 2025 – 400 Free Practice Questions to Pass the Exam

Occurrence coverage is a type of insurance policy that covers claims arising from events that occur during the policy period, regardless of when the claim is reported. This means that if an incident occurs while the policy is active, any claims related to that incident will be covered even if the claim is filed after the policy has expired. This is particularly important in fields like healthcare, where it can take time for patients to realize the effects of care received or to file a complaint.

In contrast, claims-made coverage only provides insurance for claims that are both made and reported during the policy period. This type of coverage can create gaps in protection if a claim is reported after the policy has ended. Liability coverage and comprehensive coverage are broader terms that may not specifically indicate the timing of when a claim must be reported in relation to when the event occurred, leading to potential confusion. Thus, occurrence coverage ensures long-term protection for incidents that take place during the active policy term.