What term describes a policy in liability insurance under which claims must arise during the insurance period?

The term that describes a policy in liability insurance under which claims must arise during the insurance period is known as occurrence wording. This type of wording specifies that coverage is provided for incidents that happen during the specified policy period, regardless of when the claim is actually reported or filed. This is significant because it establishes a direct link between the time an event occurs and the insurance coverage available for it.

In liability insurance, this means that if an incident takes place within the coverage period, the insurer will be responsible for providing compensation if a claim is subsequently made, even if it occurs after the policy has expired. This approach offers a level of security for policyholders, ensuring that they are protected against claims related to incidents that fall within the active duration of their insurance, creating clarity and reliability in the coverage provided.

The terms listed as alternatives do not accurately describe the specific nature of when claims need to arise to be covered under the policy. Policy documents typically outline the terms and conditions but do not define coverage timeframes. Renewal pertains to the process of extending the insurance coverage for an additional period, while a no claims bonus is a discount offered to policyholders for not making claims during a policy year, rather than a definition of coverage terms.