What is Occurrence-Based Policy?

Occurrence-Based Policy is a liability policy that covers claims for incidents that occurred during the policy period, regardless of when the claim is actually filed—even years later.

What You Need to Know

If a customer gets food poisoning in 2024 while your occurrence policy is active but doesn’t sue until 2027, you’re covered even if you’ve since canceled that policy or switched carriers.

Why It Matters for Restaurant Owners

Occurrence policies provide perpetual coverage for incidents during the policy period, offering superior long-term protection compared to claims-made policies. Most general liability, liquor liability, and property policies for restaurants are occurrence-based, which is ideal for restaurants where claims may surface years after incidents (food poisoning symptoms may take time to connect to your restaurant, or injuries may worsen over time).