An occurrence form policy covers claims arising from incidents that occur during the policy period, regardless of when the claim is actually filed. If you have an occurrence-based CGL policy in effect during 2025 and a roof you installed that year develops a leak in 2027 that causes property damage, your 2025 policy responds to the claim because the occurrence (defective installation) happened during the 2025 policy period. It does not matter that the claim was filed two years later.
For roofing contractors, occurrence form policies are strongly preferred over claims-made forms because roofing defects often have long latency periods. A flashing failure, membrane delamination, or improper drainage design may not produce a leak for years after installation. Occurrence coverage provides built-in tail protection, meaning you are covered for the life of your completed work as long as you had an occurrence policy in force when the work was performed.
Most standard CGL policies for roofing contractors are written on an occurrence basis. If you are quoted a claims-made policy, understand that it provides a fundamentally different type of protection that requires continuous renewal or the purchase of tail coverage to maintain protection for past work. When comparing quotes, always confirm whether the policy is occurrence or claims-made. An occurrence form gives you long-term peace of mind that your past work is covered even if you change carriers, retire, or close your business.