Claims-Made Policy

A claims-made policy responds based on when a claim is asserted rather than when the injury happened. Coverage requires that the claim be first made during the policy period, and many forms also require that it be reported to the insurer during that period or a short extension.

Most claims-made forms include a retroactive date, excluding conduct predating it, and offer an extended reporting period allowing claims to be reported after expiration for conduct during the term.

Alternative Names:

Claims-Made and Reported Policy

Why it Matters?

Professional liability, directors and officers, and medical malpractice coverage are usually written on claims-made forms, so reporting discipline is itself a coverage condition. Late reporting is one of the few coverage defenses that succeeds without regard to the merits of the underlying claim, which makes intake procedures a genuine risk control.

Frequently Confused with

Occurrence Policy

Retroactive Date

Extended Reporting Period

Related terms

Occurrence Policy

Retroactive Date

Extended Reporting Period

Tail Coverage

Late Notice Defense

Professional Liability Policy

Directors and Officers Coverage

Frequently asked questions

What happens if a claim is reported after the policy period?

Coverage is usually lost unless an extended reporting period applies. Most courts enforce the requirement strictly in claims-made-and-reported policies without requiring proof of prejudice to the insurer.

What is a retroactive date?

The date before which conduct is excluded from coverage. It usually corresponds to the inception of continuous claims-made coverage, and it is lost if the insured allows coverage to lapse.