What is a Claims Made policy?

We are most familiar with an Occurrence policy such as Auto or Homeowners insurance or most Commercial General Liability policies. These policies are triggered by the date of the “Occurrence”. If a claim develops for an injury that occurred two years ago, we simply report the claim to the insurance company that provided the coverage two years ago even if they do not currently provide the coverage. There is the one trigger – the date of the occurrence.

A Claims Made policy requires two triggers. First, just like the Occurrence policy, was the policy in force on the date of the alleged Occurrence and second, is the policy in force on the day that the claim is made? Being able to satisfy this second trigger becomes an issue if the policy is terminated. Please let us know if we can provide you with additional information about Claims Made policies.