Claims-made coverage responds to claims first made and reported during the policy period. Disputes concern when a claim was first made, whether a demand or communication qualified, and whether reporting was timely.
Related claims provisions may relate later claims back to an earlier report.
Alternative Names:
Claims-Made Dispute, Reporting Issue
Why it Matters?
What constitutes a claim is the recurring dispute, because a client letter expressing dissatisfaction may or may not qualify depending on the policy definition, and treating it as insignificant can forfeit coverage when a formal claim follows in a later period. The conservative practice is reporting any communication that could constitute a claim, since notice of circumstances provisions generally preserve coverage without triggering a claim on the record.
Frequently Confused with
Related terms
Frequently asked questions
What qualifies as a claim?
What is the conservative practice?
