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When purchasing liability insurance, it is crucial to determine whether the policy is a per occurrence or claims made policy because this significantly impacts how and when coverage is provided. A per occurrence policy covers incidents that happen during the policy period, regardless of when the claim is reported. In contrast, a claims made policy only covers claims that are reported during the policy period, regardless of when the incident occurred. Understanding this distinction helps ensure that you choose a policy that aligns with your specific needs, especially in contexts where timing of claims reporting can be critical for protection and coverage.

While factors such as coverage for multiple incidents, personal injury protection, and international coverage are also important, they may not be as fundamental in determining the overall structure and timing of your liability coverage as the distinction between per occurrence and claims made policies. This foundational understanding is essential for effective risk management and ensuring adequate liability protection in your professional practice.