What is "occurrence" coverage designed to insure?

Occurrence coverage is designed to insure incidents that take place during the policy period, regardless of when the claim is made. This means that if a covered event happens while the policy is active, the insured is protected even if the claim is filed after the policy has expired. This type of coverage is beneficial because it provides long-term protection for claims that may arise from events that occurred in the past, offering a safety net against potential liabilities that could emerge long after the policy period has ended.

The other options do not capture the essence of occurrence coverage appropriately. Claims made during the policy period only refers to claims-made coverage, which is different from occurrence coverage. Similarly, incidents occurring outside of business hours are not a distinguishing factor for occurrence coverage, as it pertains to the timing of the occurrence itself, not the time of claim submission. Finally, future claims made after the policy expires pertains to coverage that would not be included with standard occurrence policies. Therefore, occurrence coverage specifically focuses on claims related to events occurring during the active policy period, cementing its importance in risk management.