Claims-Made Policy — Insurance Claims Definition
A policy that covers claims first made against the insured and reported to the insurer during the policy period, subject to retroactive date rules.
Claims-made coverage is standard for many professional liability and directors and officers policies. It covers claims made and reported while the policy is in force, not necessarily when the wrongful act happened — if the act falls after the retroactive date.
Extended reporting period (tail) coverage is critical when canceling; without it, acts before expiration may have no coverage if reported after lapse.
Examples
An accountant's E&O is claims-made with retroactive date 1/1/2018; a claim first asserted in 2024 for work done in 2019 is covered if reported during the 2024 policy term.
Common Mistakes
Letting a claims-made policy lapse without tail leaves a gap for past acts. Confusing retroactive date with policy inception causes uncovered claims.
