Claims Made Versus Occurrence

Claims Made Versus Occurrence is a critical concept in construction compliance that general contractors encounter regularly across their project portfolio. Understanding this term and its practical implications helps GC compliance managers make better decisions and reduce risk exposure.

Construction risk management encompasses the strategies and mechanisms GCs use to transfer, retain, or mitigate risk across their project portfolio. Poor risk management is the leading cause of GC business failure.

For GC firms managing multiple projects with dozens of subcontractors, tracking and managing claims made versus occurrence requirements across the portfolio is a significant operational challenge that benefits from systematic processes and automation.

When evaluating claims made versus occurrence in a construction compliance context, GCs should consider both the immediate contractual implications and the long-term risk exposure. The specific requirements may vary by project, jurisdiction, and contract type, so it is essential to review each situation against your company's standards and the applicable regulations.

In the construction industry, claims made versus occurrence directly affects how general contractors manage subcontractor relationships, project risk, and compliance documentation. GCs who implement systematic tracking and validation of claims made versus occurrence requirements report significantly fewer compliance gaps and lower exposure to claims and disputes.