Occurrence policies
Why the date of the loss, not the date of the claim, decides which policy pays.
An occurrence policy pays for a covered loss based on when the injury or damage actually happened, not when the claim is filed, even if that is years later. Most association general liability policies work this way. Directors and officers coverage usually does not: it is almost always written on a claims-made basis instead.
What "occurrence" actually means
An occurrence policy ties coverage to the date the injury or property damage actually took place, not to the date someone files a claim about it. Coverage attaches the moment the covered event happens, and it stays attached to that policy period no matter how long the claim takes to surface.
Picture a slip and fall on a common-area sidewalk in March. If the board carried an occurrence policy that March, that same policy responds when the injured party eventually sues, even two or three years later, even if the association has since switched insurers or let that specific policy lapse. The question an occurrence policy asks is simple: was this policy in force on the day the loss happened? Nothing about the claim's later timeline changes that answer.
Where each structure shows up in association coverage
The two structures are not evenly split across an association's policies. The commercial general liability form widely used across the industry, the coverage that responds to common-area injury and property damage claims against the HOA, is described as occurrence based: it responds to events happening during the policy period regardless of when a claim is later filed (LegalClarity's summary of ISO's CG 00 01 form).
Directors and officers coverage runs the other way.
"Almost all D&O coverage is 'claims-made,' though some may be 'occurrences.'"
Source: Community Association Insurance Manual, Epsten, APC
| Coverage line | Typically written as |
|---|---|
| General liability | Occurrence |
| Directors and officers (D&O) | Claims-made (almost always) |
Why the difference matters when the board acts
Because an occurrence policy is pinned to the date of loss, canceling it or switching carriers does not erase the coverage that already attached to past events. That policy year still stands behind them. Whether a specific policy in your association's stack is actually written occurrence or claims-made, and where any retroactive date sits, is set by the policy document itself, not by the coverage line's usual pattern. Ask your broker to confirm both before the board relies on either assumption.
Timing still matters even under an occurrence policy. Most policies do not set a fixed deadline for reporting a loss, but delay itself can put the association's rights at risk, so a board that discovers damage should report it to the carrier promptly rather than waiting to see whether a claim actually develops.
Check yourself
Answer before you read the explanation, recalling it is what makes it stick.
A common-area pipe leaks in 2023 while the HOA's occurrence-basis GL policy is active. The damage isn't reported until 2026, after the HOA switched insurers. Which policy responds?
The board switches D&O insurers this year without checking the new policy's retroactive date. A lawsuit is filed this year over a board decision made three years ago. What is the biggest risk?
A new board member asks which of the association's usual policies is most likely written claims-made, needing close attention to continuous coverage. What do you tell them?
Sources
- How to Complete ISO Form CG 00 01: Commercial General Liability Coverage, LegalClarity
- Community Association Insurance Manual, Jay Hansen, Esq., Epsten, APC
- Post Loss Compliance: The Duty to Give Prompt Notice, Gina Clausen Lozier, Esq., Berger Singerman LLP
Related elsewhere in the Academy
Insurance
Next, see how a claims-made policy's retroactive date can quietly leave the board exposed: Claims-made policies.
Whether a specific line in your association's insurance program is written occurrence or claims-made, and where its retroactive date sits, varies by insurer and by policy. Only the actual policy document controls, so confirm both with your broker before the board relies on the usual pattern.