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📌 '''Claims-made and reported''' is a [[Definition:Policy trigger | policy trigger]] mechanism under which an [[Definition:Insurance policy | insurance policy]] responds only if both the [[Definition:Claim | claim]] is first made against the [[Definition:Policyholder | insured]] and the insured reports that claim to the [[Definition:Insurance carrier | insurer]] during the policy period (or within any applicable extended reporting window). It represents a stricter variant of the more common [[Definition:Claims-made coverage | claims-made]] trigger, which generally requires only that the claim be made during the policy period — with reporting permitted within a reasonable time thereafter. The "and reported" requirement adds a second temporal gate, making timely notification a condition of coverage rather than merely a contractual obligation.

🔍 This trigger is prevalent in professional liability, [[Definition:Directors and officers (D&O) insurance | directors and officers (D&O)]], [[Definition:Errors and omissions (E&O) insurance | errors and omissions]], and [[Definition:Cyber insurance | cyber]] lines — areas where long-tail exposures make [[Definition:Occurrence-based coverage | occurrence-based]] triggers impractical for insurers seeking to close out policy years with certainty. Under a claims-made and reported policy, if an insured receives a demand letter on December 30 but does not notify the carrier until January 5 of the following year — after the policy has expired — the insurer can deny coverage on the basis that the claim was not reported within the policy period. Some jurisdictions impose consumer-protection guardrails: courts in certain U.S. states have applied "notice-prejudice" rules that bar denial unless the insurer can demonstrate actual prejudice from late reporting, while other markets enforce the policy language strictly. Extended reporting period (or "tail") provisions, whether automatic or purchasable, can mitigate the harshness of this trigger by extending the window for reporting claims discovered after expiry.

⚠️ The practical stakes of the claims-made and reported trigger are enormous for policyholders and brokers alike. An insured who fails to understand the reporting requirement risks a coverage gap — believing a policy covers a claim simply because the wrongful act and the demand both fell within the policy period, only to find that late notification voids the protection. [[Definition:Insurance broker | Brokers]] play a critical role in educating clients, establishing internal notification protocols, and ensuring that any transition between successive insurers or from claims-made to [[Definition:Occurrence-based coverage | occurrence-based]] coverage is handled without a gap. For insurers, the trigger offers significant [[Definition:Loss reserving | reserving]] advantages: it confines reported liabilities to known policy periods, reducing the uncertainty inherent in long-tail reserves and allowing more precise [[Definition:Incurred but not reported (IBNR) | IBNR]] estimation.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Claims-made coverage]]
* [[Definition:Occurrence-based coverage]]
* [[Definition:Extended reporting period]]
* [[Definition:Policy trigger]]
* [[Definition:Incurred but not reported (IBNR)]]
* [[Definition:Professional indemnity insurance]]
{{Div col end}}

Definition:Claims-made and reported - Revision history

PlumBot: Bot: Creating new article from JSON