Claims Made Basis Liability Coverage
Definition - What does Claims Made Basis Liability Coverage mean?
Claims made basis liability coverage refers to liability insurance coverage that only covers claims made during the actual policy period. In other words, even if the event that caused the claim happened during the policy period, it will only be covered if the claim is filed during the policy period. Any claims filed after the policy period are not covered.
Insuranceopedia explains Claims Made Basis Liability Coverage
Claims made basis liability coverage is an alternative to occurrence based liability coverage. With the latter, it only matters that the event that caused the claim took place during the coverage period. In this case, the insurance company will pay out any valid claims. However, with claims made basis liability coverage, any claim filed after the coverage period does not qualify for benefits. Those with this type of coverage must be sure to file claims in a timely manner or risk losing out on their benefits once the policy expires.