Claims-made policy
Also called Claims-made coverage
Definition
A claims-made policy covers claims first made against you during the policy period, for work or incidents that happened on or after the policy’s retroactive date.
How it works
A claims-made policy looks at when a claim arrives, not just when the mistake happened. To be covered, a claim typically has to meet two conditions:
- The work or incident happened on or after the policy’s retroactive date.
- The claim is first made against you, and reported to the insurer, during the policy period or an extended reporting period.
Many policies also set a deadline for reporting a claim, such as during the policy period or within a short window after it ends. Miss it and the claim may not be covered, so report early.
Compare an occurrence policy, which covers incidents that happen during the policy period no matter when the claim is made. Professional liability and cyber insurance are commonly written on a claims-made basis.
Why keeping coverage continuous matters
Because the trigger is the date of the claim, you need a policy in force when the claim shows up, which can be years after the work. Renewing with the same retroactive date keeps your earlier work covered. If you switch insurers, ask the new one to keep your original retroactive date. If you close the business or retire, an extended reporting period, often called tail coverage, gives you more time to report claims about past work.
The occurrence vs. claims-made guide compares the two side by side, and the professional liability page explains how Corgi’s coverage works.