More Dangers Lurking In Claims-Made Policy Forms

  Monday, April 8th, 2019 Source: IRMI

This article is the second in a series of three articles addressing the potential pitfalls embedded in claims-made coverage triggers. The final article in this series will examine three additional claims-made coverage trigger traps and explain how to avoid them. In addition to the definition of "claim" (as discussed in my first article within this series), other definitions in claims-made policy forms can also be problematic for insureds. A policy’s definitions can be industry-or coverage-specific, and both types may create the possibility of a coverage gap. Problematic definitions sections are not necessarily particular to claims-made policy forms. Yet, the definitions discussed below are a regular feature in employment practices liability insurance (EPLI) policy forms, virtually all of which are written with claims-made coverage triggers.

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