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📋 '''Claims-made and reported policy''' is a form of [[Definition:Insurance policy | insurance coverage]] that responds only when both conditions are satisfied within the [[Definition:Policy period | policy period]]: the [[Definition:Claim | claim]] must first be made against the [[Definition:Policyholder | insured]], and the insured must then report that claim to the [[Definition:Insurance carrier | insurer]] — all before the policy expires. This dual requirement distinguishes it from a standard [[Definition:Claims-made basis | claims-made]] policy, which typically requires only that the claim be made during the policy period (with reporting permitted within a reasonable time afterward). The "and reported" element adds a tighter constraint, and it is especially prevalent in the [[Definition:Lloyd's | Lloyd's]] market and across London market [[Definition:Excess and surplus lines insurance | specialty lines]], where precision around trigger timing is essential for managing [[Definition:Underwriting year | underwriting year]] exposures.

🔍 Operationally, the "and reported" condition places a sharper burden on the insured to act promptly. If a professional receives a demand letter on December 30 but does not notify the insurer until January 5 of the following year, the expiring claims-made and reported policy will typically decline to respond — and the succeeding policy may also exclude the claim if its [[Definition:Retroactive date | retroactive date]] does not extend back far enough or if it contains a [[Definition:Prior knowledge exclusion | prior knowledge exclusion]]. To soften this harshness, many policies offer a short grace window — sometimes called a "reporting tail" of a few days — or the insured can purchase an [[Definition:Extended reporting period | extended reporting period]] endorsement. In [[Definition:Reinsurance | reinsurance]], the claims-made and reported structure is heavily favored because it provides cleaner allocation of losses to specific treaty periods, reducing disputes between consecutive-year [[Definition:Reinsurer | reinsurers]] over which contract bears a particular loss.

⚠️ The practical stakes of this policy form are high. Policyholders — particularly in [[Definition:Professional liability insurance | professional indemnity]], [[Definition:Directors and officers liability insurance (D&O) | D&O]], and [[Definition:Cyber insurance | cyber]] lines — must build internal processes that ensure rapid escalation and notification of potential claims, because even a short delay can void coverage entirely. [[Definition:Insurance broker | Brokers]] play a critical role in educating clients about the notification mechanics and ensuring seamless transitions between consecutive policy periods so that no gap in coverage emerges. For [[Definition:Underwriting | underwriters]], the "and reported" requirement provides greater certainty when closing out [[Definition:Underwriting year | underwriting years]], since it caps the period during which new claims can attach. This structural certainty makes the form attractive in markets like Lloyd's, where [[Definition:Syndicate | syndicates]] must eventually close their years of account and transfer remaining liabilities through the [[Definition:Reinsurance to close (RITC) | reinsurance to close]] process.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Claims-made basis]]
* [[Definition:Extended reporting period]]
* [[Definition:Retroactive date]]
* [[Definition:Occurrence-based policy]]
* [[Definition:Claims trigger]]
* [[Definition:Reinsurance to close (RITC)]]
{{Div col end}}

Definition:Claims-made and reported policy - Revision history

PlumBot: Bot: Creating new article from JSON