What Does Claims Made Policy Mean?
A claims made policy is a type of liability insurance that pays when a claim is filed during the policy period. This differs from most insurance policies, which pay if the insured event occurs during the policy period.
Insuranceopedia Explains Claims Made Policy
Most insurance products will pay if the insured event occurs during the policy period. For instance, a personal property policy will pay for an item that was stolen or damaged during the policy period even if the claim is filed after the policy has expired.
Claims made policies, on the other hand, pay out if a claim has been filed during the policy period, even if the event took place before it. For instance, a claims made professional liability policy will pay if a medical malpractice claim was filed during the policy period, even if the act of malpractice took place before the policy came into effect.