PlumBot: Bot: Creating new article from JSON

2026-03-11T04:31:47Z

Bot: Creating new article from JSON

New page

📋 '''Claims-made''' is a [[Definition:Policy form | policy form]] structure under which coverage is triggered when a [[Definition:Claim | claim]] is first reported to the [[Definition:Insurance carrier | insurer]] during the active [[Definition:Policy period | policy period]]—regardless of when the underlying incident actually occurred. This stands in contrast to an [[Definition:Occurrence policy | occurrence-based policy]], where the date of the loss event itself determines whether coverage applies. Claims-made policies are the dominant form in [[Definition:Professional liability insurance | professional liability]], [[Definition:Directors and officers liability insurance (D&O) | directors and officers (D&O)]], and [[Definition:Cyber insurance | cyber insurance]], where harmful events can remain hidden for months or years before a claim surfaces.

⚙️ Because the reporting date drives coverage, claims-made policies introduce several mechanisms that shape the [[Definition:Policyholder | policyholder's]] protection window. A [[Definition:Retroactive date | retroactive date]] sets the earliest point from which covered acts are eligible; any incident predating that boundary falls outside the policy's scope even if reported during the current term. Meanwhile, an [[Definition:Extended reporting period (ERP) | extended reporting period]]—often called a "tail"—can be purchased to allow the insured to report claims after the policy expires, which is critical when switching carriers or ceasing operations. Underwriters favor the claims-made structure partly because it gives them tighter control over [[Definition:Reserving | reserving]]: the universe of potential claims is bounded by the policy's reporting window rather than left open-ended.

🔑 For insureds, understanding the claims-made trigger is vital because a gap in coverage—even a single day without a policy in force—can leave an entire period of professional activity unprotected. Brokers advising clients in [[Definition:Errors and omissions insurance (E&O) | E&O]] or [[Definition:Medical malpractice insurance | medical malpractice]] must ensure that retroactive dates are preserved when policies are renewed or moved to a new carrier. From the insurer's perspective, the claims-made form offers more predictable [[Definition:Loss development | loss development]] patterns and reduces the long-tail uncertainty that plagues occurrence-based [[Definition:Casualty insurance | casualty]] lines.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Occurrence policy]]
* [[Definition:Retroactive date]]
* [[Definition:Extended reporting period (ERP)]]
* [[Definition:Professional liability insurance]]
* [[Definition:Tail coverage]]
* [[Definition:Policy period]]
{{Div col end}}

Definition:Claims-made - Revision history

PlumBot: Bot: Creating new article from JSON