What is the main feature of occurrence-based coverage?

The primary characteristic of occurrence-based coverage is that it covers incidents that occur during the policy period, regardless of when claims are filed, including after the policy has expired. This type of coverage ensures that if an incident occurs within the coverage period but the claim is made later, the insurance still applies.

This feature is significant because it provides policyholders with peace of mind, knowing that they are protected against claims arising from events that happened while the policy was active, even if they do not become aware of these incidents until much later. In contrast, claims-made policies only cover claims if they are filed while the policy is in effect.

Therefore, the essence of occurrence-based coverage lies in its ability to protect against liabilities that arise from incidents occurring during the policy period, emphasizing the timing of the event over the timing of the claim.