What does an "occurrence" liability policy cover?

An "occurrence" liability policy is designed to provide coverage for claims that arise from incidents or events occurring during the policy period, regardless of when the claims are actually filed. This means that if an event causing harm happened while the policy was active, the policy will cover it even if the claim is made after the policy has expired. This provides a significant benefit to policyholders, as it offers broader protection and peace of mind, knowing that they are shielded from claims that may arise from situations they were liable for during their coverage period.

In contrast, the other options do not accurately describe the nature of occurrence policies. A policy cannot generally cover claims made for occurrences that happened before the policy began or that only involve intentional acts causing harm, as those do not fall under the typical scope of occurrence coverage. Understanding the full implications of how occurrence policies work is crucial for effective risk management in liability scenarios.