PlumBot: Bot: Creating new article from JSON

2026-03-16T09:41:52Z

Bot: Creating new article from JSON

New page

📝 '''Claims made''' is a [[Definition:Policy | policy]] trigger mechanism under which coverage applies only to [[Definition:Claim | claims]] first made against the insured — and reported to the [[Definition:Insurance carrier | insurer]] — during the active policy period, regardless of when the underlying act, error, or event that gave rise to the claim actually occurred. This stands in contrast to the [[Definition:Occurrence | occurrence]]-based trigger, which responds based on when the loss event took place. Claims-made policies dominate [[Definition:Professional liability insurance | professional liability]], [[Definition:Directors and officers liability insurance (D&O) | directors and officers]], [[Definition:Errors and omissions insurance (E&O) | errors and omissions]], and [[Definition:Cyber insurance | cyber]] lines, where the gap between the wrongful act and the resulting claim can span years.

🔄 A claims-made policy typically includes a [[Definition:Retroactive date | retroactive date]] — the earliest date from which covered acts can trigger a claim — and may offer an [[Definition:Extended reporting period (ERP) | extended reporting period]] (sometimes called a "tail") that allows the insured to report claims after the policy expires for acts that occurred during the policy period. The insured must satisfy two timing conditions: the wrongful act must fall on or after the retroactive date, and the claim must be made and reported within the policy period or any applicable extended reporting window. Many claims-made policies also include a [[Definition:Circumstance | circumstance notification]] provision, enabling the insured to put the insurer on notice of a potential future claim during the policy period, thereby anchoring that future claim to the current policy. These interlocking timing mechanisms make policy continuity critical — any gap in coverage or advancement of the retroactive date at renewal can leave the insured exposed.

⚠️ The claims-made structure emerged largely because [[Definition:Underwriter | underwriters]] of [[Definition:Long-tail insurance | long-tail]] liability lines needed greater certainty about the period in which their exposure would crystallize. Under an occurrence form, an insurer can face claims decades after a policy expired, creating persistent [[Definition:Reserving | reserving]] uncertainty. Claims-made coverage narrows that window, concentrating reporting into a defined period and giving insurers more timely visibility into their liability. For policyholders, however, the structure demands careful attention to renewal terms and retroactive dates — a lapse in coverage or a new retroactive date can create a gap that leaves historical acts uninsured. Across jurisdictions, regulatory treatment varies: some markets mandate [[Definition:Extended reporting period (ERP) | tail coverage]] options by statute, while others leave the terms entirely to negotiation. Understanding how claims-made triggers interact with [[Definition:Reinsurance | reinsurance]] treaties is equally vital, as misalignment between the direct policy trigger and the reinsurance contract basis can create unintended coverage gaps.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Occurrence]]
* [[Definition:Retroactive date]]
* [[Definition:Extended reporting period (ERP)]]
* [[Definition:Circumstance]]
* [[Definition:Professional liability insurance]]
* [[Definition:Long-tail insurance]]
{{Div col end}}

Definition:Claims made - Revision history

PlumBot: Bot: Creating new article from JSON