Occurrence vs. Claims-Made: Which Works Better After a Claim?

• When you’ve had a prior claim or a non-renewal, underwriters often recommend a claims-made form. Occurrence has its place, but in many real-world PA scenarios, claims-made may offer better eligibility, pricing, and long-term flexibility.

 

Quick definitions

• Occurrence covers incidents that happen during the policy term—even if the claim is filed years later. No tail needed.

• Claims-Made covers claims that are reported while the policy is active (or during a tail). To cover past work, you maintain a retroactive date (sometimes called “prior acts” or “nose”).

• Bottom line: If eligibility is tight or you’re rebuilding after a claim, claims-made is often the underwriter’s preferred structure.

 

Why underwriters favor Claims-Made for prior-claim PAs

• Eligibility & appetite
  Many carriers will only offer terms on a claims-made basis for prior-claim profiles. It gives them a clearer runway to price and manage risk.

• Lower initial premium, smoother cash flow
  Claims-made policies typically start lower and step up over the first few years (maturity). That can ease cash flow while you stabilize post-claim.

• Retroactive (“prior acts”) continuity
  Keeping your retro date means your past work may be covered by the new policy—without buying a separate tail from the old one. (We’ll verify whether your file qualifies.)

• Optional tail—not automatic
  You only buy a tail (ERP) when you stop the policy (e.g., cease practice, change to occurrence, or face a gap). You’re not forced to pay for tail now.

• Portability between carriers
  If you later switch carriers, you can often carry your retro date forward. That maintains continuous protection for past services without re-purchasing tail.

• Underwriting optics
  After a claim, carriers often view claims-made as a more controlled risk structure—which can mean more quotes and better options.

 

When Occurrence still makes sense

• Simple, stable risk with long-term plans on one carrier and budget for a higher starting premium

• You explicitly want to avoid managing tail later

• You’re not seeking portability between markets or carriers

• We’ll outline both options if available—just know that post-claim, claims-made is the more common path to “yes.”

 

How retro dates, noses, and tails work (fast guide)

• Retroactive date (retro): The earliest date your claims-made policy will respond to services you provided in the past. Keep the oldest retro you can.

• Nose coverage / prior acts: When a new policy includes prior acts, it picks up your history from the retro forward—no tail purchase needed at the switch.

• Tail (ERP): Extends the time to report claims after the policy ends. Tails can be 1–5 years (or unlimited). Some carriers offer free tails for death, disability, or retirement if eligibility criteria are met.

• We’ll confirm whether your situation may qualify for prior-acts continuity or if a tail is the smarter move.

 

Real-life scenarios (illustrative)

• Non-renewed after a paid claim: Claims-made with your retro date preserved. Premium starts lower than occurrence, steps up with maturity.

• Two closed claims, improved protocols: Claims-made with small deductible; prior acts included; tail not required at the switch.

• Open board inquiry: Conditional claims-made quote with retro maintained; tail decision deferred until resolution.

• (Examples are for illustration only; each situation is individually underwritten and may vary by carrier and state.)

 

Compare at a glance​