EXCAVATION INSURANCE GROUP
What’s the Difference Between Occurrence and Claims-Made GL?
Excavation Insurance Group explains why occurrence-form GL, not claims-made, is the standard for excavation work given its long-tail subsidence exposure.
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Quick answer: An occurrence policy covers claims from incidents that happened while the policy was active, no matter when the claim is filed later. A claims-made policy only covers claims filed while the policy is active (or during an extended reporting period). Excavation Insurance Group writes excavation GL almost exclusively on occurrence form, and here’s why that matters for this trade specifically.
WHY THE DIFFERENCE MATTERS MORE FOR EXCAVATION
Excavation creates exactly the kind of long-tail exposure where this distinction has teeth: a backfilled trench that settles and cracks a foundation months or years after the job wrapped is a classic delayed-manifestation claim. Under an occurrence policy, that claim is covered because the damage occurred during the policy period, even if you’ve since switched carriers or the policy has expired. Under a claims-made policy, you’d need continuous claims-made coverage or “tail” coverage in place at the time the claim is actually filed, or it may not respond at all.
WHY OCCURRENCE IS THE INDUSTRY STANDARD FOR THIS TRADE
Most General Liability policies in construction, and virtually all excavation GL, are written on occurrence form for exactly this reason: the exposure doesn’t end when the crew leaves the site. Claims-made GL is far more common in professional liability lines (like architects or engineers), where the claim trigger logic works differently. If you ever see a claims-made GL quote for excavation work, it’s worth asking directly why, since it shifts real risk onto the contractor around future coverage continuity.
Back to the General Liability Insurance for Excavation Contractors hub. See also: Can I Get GL Insurance With a Prior Claim on My Record?
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