What is an "occurrence" triggered policy in liability insurance?

An "occurrence" triggered policy in liability insurance is defined by its coverage of claims that arise from incidents occurring during the policy period, regardless of when the claims are reported. This means that if an event leading to a claim occurs while the policy is active, the insurer is responsible for providing coverage even if the claim is made after the policy has expired. This characteristic offers significant protection to policyholders, as it helps address the uncertainties and delays that can occur in reporting incidents, aligning with situations where the full impact of an incident may not be realized until much later.

The other options do not capture the essence of an occurrence-triggered policy. Some might focus solely on reported claims, which would limit coverage significantly, while others might misinterpret the relationship between deductibles and the triggering of coverage, or misrepresent the intent behind the policy, as coverage typically does not extend to intentional acts. This underscores the broad nature of the protection afforded by an occurrence-triggered policy, making it a vital inclusion in understanding liability insurance.