Own-Occupation Policy

Definition of 'Own-Occupation Policy'


An insurance policy that covers individuals who become disabled and are unable to perform the majority of the occupational duties that they have been trained to perform. This type of insurance policy is contingent on the individual being employed at the time the disability occurs.

Also known as a "pure own-occupational policy".

Investopedia explains 'Own-Occupation Policy'


Persons not working at the time of disablement will not be able to claim insurance under an own-occupation policy but, if they are covered under a modified own-occupational policy, they will. Under a modified policy, the definition of disabled includes persons not working at the time of their disablement. These types of insurance policies apply to highly trained individuals, such as surgeons.

Because the definition on own-occupation is very flexible, persons covered under an own-occupation policy may find another job and still receive full benefit payments.


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