Guide
Claims-Made vs Occurrence for Design Professionals
Written and reviewed by Michael LaBarbera, licensed insurance agent
Claims-made coverage turns on claim timing and reporting requirements; occurrence coverage turns on the policy-defined event timing. Design professional liability is commonly claims-made, so continuity and prior-acts protection deserve close attention.
What are the key facts?
| The Hartford small-firm design professional guide describes its product as a claims-made, standalone policy. | [hartford-guide] |
| The same guide describes an automatic 60-day extended reporting period after the policy ends. | [hartford-guide] |
| Under a claims-made form, the claim date, reporting requirements and prior-acts provisions are read together. | [hartford-guide] |
Why is design professional liability usually claims-made?
Design errors often surface years after drawings are issued, when a building settles, leaks or fails an inspection. An occurrence trigger would leave the insurer that wrote coverage long ago exposed to claims it could not price. Claims-made forms tie the response to the year the allegation arrives, which lets carriers price current exposure and lets the firm buy limits that reflect today's contracts rather than limits bought a decade earlier.
What does a claims-made gap look like in practice?
A firm designs a parking structure in one year, lets its policy lapse while principals change, then buys a new policy with a fresh retroactive date. When the owner later alleges a drainage defect, the new policy may treat the earlier design as outside its prior-acts boundary, and the old policy has expired. Matching retroactive dates at every renewal, or buying extended reporting before a lapse, is how firms avoid that outcome.
How should a firm compare carriers on this point?
Ask each carrier quoted through our agency for the proposed retroactive date, the length and price basis of any extended reporting option, and whether a reporting window follows non-renewal. We present these answers side by side and show which carriers declined and why, so the trigger language can be compared before the firm commits.
When might an occurrence form appear for a design firm?
Occurrence wording is more familiar from general liability, where a slip in the office lobby is tied to the date it happened. Some project-specific or package policies blend both ideas. If a contract demands occurrence-based professional liability, ask the owner whether a claims-made policy with a matching retroactive date and a defined reporting period would satisfy the clause before assuming the request can be met.
What to send for an agent review
Compare the triggering language rather than assuming a policy name describes every reporting condition. Preserve records of the act, first allegation and report to the insurer.
The policy form, endorsements and reported facts control coverage. This comparison is educational; it is not an underwriting decision, a carrier ranking or legal approval.
Frequently asked questions
Is professional liability for architects and engineers claims-made or occurrence?
It is commonly written on a claims-made basis, as The Hartford small-firm guide describes for its product. Confirm the form on each quote.
Does buying a new claims-made policy cover my earlier projects?
Only if its retroactive date reaches back to the earlier work and other terms are met. Ask the new carrier to match your existing date.
What happens if I retire with a claims-made policy?
Claims about earlier work can still arrive. An extended reporting period may allow later reporting; compare the length and conditions offered.
What are the sources?
- Design Professional Liability — The Hartford · Source date 2026-07
Policy forms and endorsements control; this is not legal advice or a coverage decision.
Carrier names identify markets quoted through our agency. Availability depends on underwriting, state, policy wording and endorsements; this is not an offer of coverage.
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