What are the two types of CGL claims forms?

The two types of Commercial General Liability (CGL) claims forms are the Occurrence version and the Claims-made version.

The Occurrence version provides coverage for claims arising from incidents that occur during the policy period, regardless of when the claim is actually reported. This means that if an incident happens while the policy is in effect, it will be covered even if the claim is made after the policy has expired. This type of coverage is particularly valued as it offers protection for events that may be reported long after they initially occur, which is common in liability cases.

On the other hand, the Claims-made version only covers claims that are made during the policy period. This form requires that both the incident and the claim occur while the insurance is active, which can limit coverage in certain situations, especially for long-tail liabilities where incidents may not surface until much later.

Understanding these two types of CGL claims forms is crucial for businesses in selecting the right coverage for their potential liabilities, ensuring they are adequately protected based on their specific needs and risk profiles.