What type of claim form does a BOP use for liability coverage?

A Business Owners Policy (BOP) typically utilizes the occurrence form for liability coverage. This type of claim form is essential because it provides coverage for incidents that occur during the policy period, regardless of when the claim is reported. This means that as long as the event leading to the liability occurred while the policy was active, it will be covered even if the claim is filed after the policy has expired.

This approach is beneficial for businesses that may not become aware of a liability issue immediately after an incident happens. It allows businesses to have peace of mind knowing that they are covered for past events as well as current ones, as long as they took place during the active coverage period.

In contrast, other types of forms, such as the claims-made form, only cover incidents that are reported during the policy term, which can leave potential gaps in coverage if a claim arises later. This differentiates the two forms significantly, making the occurrence form a more comprehensive option in the context of liability coverage for businesses.