What type of insurance policy covers claims for incidents that occurred while the policy was active, even if the policyholder is no longer at the job?

Occurrence-based insurance is a type of policy that covers claims for incidents that occurred during the time the policy was active, regardless of when the claim is made, even if the policyholder is no longer employed. This means that if a claim arises from an event that happened while the policy was in effect, the coverage is still valid, no matter how much time has passed since the actual incident.

This feature is particularly beneficial for professionals who may face lawsuits or claims long after they have left a job or let their insurance lapse, as it protects them from potential liabilities arising from past work. The long-lasting nature of the coverage provides peace of mind as it transcends the employment period.

In contrast, claims-made insurance only provides coverage for incidents that occur and are reported during the active policy period. If a policyholder transitions to a new job or stops working in their profession, they may lose coverage for any claims related to past incidents unless they purchase tail coverage. Other options like liability insurance and general insurance describe broader categories and don't specifically address the timing of coverage concerning incidents.