Final answer:
An Occurrence general liability policy pays for bodily injury or property damage that occurs during the policy period, regardless of when the claim is made.
Step-by-step explanation:
The type of liability policy that pays for bodily injury or property damage during the policy period is the Occurrence general liability policy. Unlike a Claims made policy, which only provides coverage if the claim is made during the policy period, an Occurrence policy covers incidents that occur during the policy period, regardless of when the claim is filed. This means that if a covered event (an "occurrence") happens during the time the policy is active, the insurer will pay for the losses, even if the claim is reported after the policy has expired.
Examples of scenarios where this insurance would pay out include if a person is injured on a business's premises and sues for damages or if the business accidentally damages a customer's property. In the world of insurance, general liability policies are crucial for providing financial protection against these types of risks. The type of liability policy that pays for bodily injury or property damage during the policy period is the Occurrence general liability policy.
This type of policy provides coverage for claims that occur during the policy period, regardless of when the actual claim is made or reported. This means that if an incident causing bodily injury or property damage happens during the policy period, the policy will pay for the damages even if the claim is made after the policy expires.
For example, if someone slips and falls on your property during the policy period and files a claim after the policy expires, an occurrence general liability policy would still cover the cost of the bodily injury.