What does the term Occurrence version in a CGL policy refer to?

The term "Occurrence version" in a Commercial General Liability (CGL) policy refers to the fact that coverage is triggered by the loss itself, regardless of when the claim is filed. This means that if an incident occurs during the policy period, the coverage will apply even if the claim is made much later, as long as the incident happened while the policy was in effect.

This type of coverage is vital because it provides protection for losses that may not be reported immediately. For example, if a business has a CGL policy with an occurrence basis and a customer suffers an injury on their premises during the policy period, the policy will cover that injury even if the customer files a claim after the policy has expired. This is a key feature that differentiates occurrence coverage from claims-made policies, which only cover claims made during the policy period.

The correct understanding of occurrence coverage highlights its importance in offering sustained protection against various liabilities that can arise over time.