Not All Policies are Equal: Occurrence Form vs Claims Made

It is not always clear which option to choose when selecting insurance, and some companies hide their policy details. We're here to clear the confusion when it comes to the different types of policies.

Occurrence Form is the industry-preferred policy type over Claims Made because you are covered for any incident that happened while your policy was in effect.

Elite Beauty Insurance offers the Occurrence form Policy so that our customers do not have to rely on their client that is suing them to file a claim in a timely manner.

Get Occurrence Form Coverage with Elite Beauty Insurance

Occurrence Form

Any claim filed after the policy expires will still be covered, as long as the incident took place while the policy was active.

Claims Made

Any claim filed after the policy expires will not be covered.

Occurrence Form

Any claim filed after the policy expires will still be covered, as long as the incident took place while the policy was active.

Claims Made

Any claim filed after the policy expires will not be covered.

Occurrence Form Policy
Occurrence Form Policy

Additional Information

Occurrence Form Policy

Occurrence Form policies only need to be active when the incident in question occurs to trigger coverage, regardless of when it’s reported. In other words, any claim filed after an occurrence policy expires will still be covered, as long as the incident took place during the policy term.

Example: Your occurrence policy expired on Nov. 30, and you did not renew it. One of your clients experienced bruising after his acupressure session on Oct. 30, at which point you were insured. The client does not file a claim, however, until Dec. 30. You report the claim to your insurance provider and find out that you’re covered—even though your policy expired a month ago!

Get Occurrence Form Coverage with Elite Beauty Insurance

Claims-Made Policy

Claims-Made policies must be active when the claim is reported in order to trigger coverage. In other words, any claim filed after a claims-made policy expires will not be covered, even if the incident in question took place while the policy was active.

Example: Your claims-made policy expired on Nov. 30. One of your clients experienced pain after her deep-tissue session on Oct. 30, at which point you were insured. However, the claim isn’t filed until Dec. 30, a month after your policy expired. You report the claim to your insurance provider only to find out that you’re not covered because the claim was made after your policy term.

Claims-Made Policy + Tail Coverage

Tail coverage, also known as extended reporting period (ERP) coverage, responds to incidents which occur during the policy term but are not reported until after the policy expires. Claims-made policyholders may purchase tail coverage in order to extend their reporting period once it ends. On average, tail coverage costs two times more than the original term cost at the time of expiration.

Example: Your claims-made policy expired on Nov. 30, and you purchased tail coverage. One of your clients filed a claim on Dec. 30, regarding a massage session you performed on Oct. 30. You report the claim to your insurance provider and find out that you’re covered—even though the claim was reported after your policy expired!

The Liability master policy is issued to the Insurance Plus Risk Purchasing Group, members of which are also members of Protection Plan Association, Inc. The Identity Protection Plan is powered by Identity Fraud, Inc., Walnut Creek, CA, whose members include members of Protection Plan Association, Inc. Protection Plan, Inc. is the insurance partner for Beauty Insurance Plus. Willis of New York, Inc., a 50-state licensed broker, is the broker for all coverage under the Insurance Plus program. Willis of New York, Inc. also serves as excess and surplus lines broker for the Insurance Plus Program. Professional Liability and Commercial General Liability coverage under the Insurance Plus program is underwritten in the surplus lines market by Aspen Specialty Insurance Company, which is rated A (Excellent) by A.M. Best Company. Persons insured by surplus lines companies are not eligible for recourse through any state guarantee fund for the obligations of an insolvent insurer. Elite Beauty Insurance is included as a member benefit of Protection Plan Association, Inc., an association for health, wellness and beauty professionals and students created for the purpose of providing valuable and important benefits and services to its members.
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