Guides / COI basics

Claims-Made vs. Occurrence Policies: What It Means on a Subcontractor's COI

By SubCover HQ · Updated Nov 2, 2026 · 3 min read

The general liability row of an ACORD 25 has two small boxes: claims-made and occurrence. Most people skip right past them. They matter, because they decide whether a claim that shows up years after the job can still be covered.

The difference in one paragraph

An occurrence policy responds to injury or damage that happens during the policy period, no matter when the claim is made later, as long as the policy terms are met. A claims-made policy generally responds only when the claim is first made while the policy (or an extended reporting period) is in force, and usually only for incidents after its retroactive date.

Why it matters for construction and property work

Construction claims often arrive long after the work is done: a leak that shows up two winters later, a fall on a stair that was built last year. With occurrence coverage, the policy in force when the damage happened can respond. With claims-made coverage, if the sub has switched carriers, let the policy lapse, or gone out of business by the time the claim arrives, there may be nothing to respond.

That's why most subcontract and vendor agreements require general liability written on an occurrence basis.

Where claims-made is normal

Some coverages are almost always written claims-made, and that's expected:

• Professional liability (errors and omissions) for design professionals, engineers, and consultants.
• Pollution liability for environmental and remediation contractors, though occurrence forms exist too.
• Cyber and some management liability lines.

For these, don't reject the certificate. Instead, ask about the retroactive date and how long the coverage must be kept in force after the work ends.

What to ask for when a policy is claims-made

1. Retroactive date: it should be on or before the date work begins, so incidents from your project are within the policy's reach.
2. Continuous coverage: many contracts require the sub to keep claims-made coverage in force for a set number of years after completion. Your contract and broker set the number.
3. Extended reporting period: if the policy is canceled or not renewed, an extended reporting period (sometimes called tail coverage) can keep the window open for claims.

How to check it on the certificate

• Look at the CGL row for which box is checked. If "claims-made" is checked on general liability and your contract requires occurrence, that's a deficiency to send back to the agent.
• If neither box is checked, ask. Don't assume.
• For claims-made lines in the "Other" row, ask the agent to confirm the retroactive date in the description box or in writing.

Umbrella and excess policies

The umbrella row has the same two boxes. An umbrella written claims-made above occurrence general liability can leave a gap for late-reported claims. If you require umbrella limits, it's reasonable to require occurrence there too. See umbrella vs. excess liability.

Keep it consistent

The occurrence requirement only helps if someone checks it on every certificate, including renewals, when a sub may have switched carriers. SubCover HQ reads every certificate against your requirements, including the policy form, and flags gaps to you and the agent, for $99/month.

Frequently asked questions

What is the difference between claims-made and occurrence?

Occurrence coverage responds to incidents that happen during the policy period, whenever the claim is filed. Claims-made coverage generally responds only to claims first made while the policy or an extended reporting period is in force.

Should I accept claims-made general liability from a subcontractor?

Most contracts require general liability on an occurrence basis. If yours does, a claims-made box on the GL line is a deficiency to send back to the agent.

What is a retroactive date?

On a claims-made policy, it's the earliest date an incident can occur and still be covered. It should be on or before the date work starts.

Is professional liability usually claims-made?

Yes. Professional liability is commonly written claims-made, so ask about the retroactive date and how long coverage must stay in force after the work.

This guide is general information, not insurance or legal advice. Policy wording varies; your insurance professional and attorney determine what you should require.