Difference between claims occurring and claims made

We explain the differences so you can make an informed decision when purchasing your insurance.


A number of insurers are changing the way that they cover you for claims. At Aon we are passionate about making sure you know the difference so your business is not left exposed.

Below we explain the differences so you can make an informed decision when purchasing your insurance.

A definition

  • A ‘claims occurring’ basis covers claims that occur during the policy period irrespective of when the claim is made. So you may have changed insurer but they will still accept a claim even though the policy has ended.
  • A ‘claims made’ basis covers claims that are made and reported during the policy period only and not once the policy period is over. Your previous insurer will no longer accept the claim as you have moved provider.
  • On lapsing or cancelling a ‘claims made’ policy, the historic cover paid for has expired. This may seem unfair, but it is becoming more common as it usually limits the exposure for insurance companies.

Examples to make it clearer

Claims occurring basis:

Company A is insured with Insurer 1 from period 1st January 2014 – 31st December 2014 and finds a more competitive quote and moves insurers as of 1st January 2015. On 2nd January a liability claim is reported to Insurer A where the incident date was 30th December 2014. As the incident occurred when Insurer 1 was insuring Company A, claims occurring liability ensures that Company A is adequately covered even though they are no longer insured with Insurer 1.

Claims made basis:

Using the same example as above, with the same dates; if a claim is reported to Insurer 2 and they are no longer insuring Company A they will not proceed to settle the claim. If Company A has not sourced “run off” cover this will put them in a difficult position of not being insured by Insurer 2 and not being insured by the new insurer.

The above examples should illustrate, in our opinion, that a claims occurring basis is usually the most prudent basis to adopt within the Care Home Insurance Sector.

Whilst care has been taken in the production of this article and the information contained within it has been obtained from sources that Aon UK Limited believes to be reliable, Aon UK Limited does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the article or any part of it and can accept no liability for any loss incurred in any way whatsoever by any person who may rely on it. In any case any recipient shall be entirely responsible for the use to which it puts this article.

This article has been compiled using information available to us up to 12.01.16.

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