What is a characteristic of occurrence-based insurance?

Occurrence-based insurance is designed to cover incidents that happen during the policy period, regardless of when the claim is filed. One key characteristic of this type of insurance is that coverage remains effective as long as the incident occurred while the policy was in force, even if the insured changes jobs or retires. This means that an occurrence-based policy continues to provide protection for past incidents, making the coverage not affected by job changes.

This aspect is particularly attractive for professionals, as it allows them to maintain their coverage continuity, protecting them against claims related to occurrences from their previous employment. Understanding this characteristic helps professionals make informed decisions about their insurance needs and ensures they remain protected in their practice.