What are “Claims-Made” policies? How this policy is different from conventional/normal insurance policy?

Posted on Jun 14, 2008 under Insurance Information |

7 Responses to “What are “Claims-Made” policies? How this policy is different from conventional/normal insurance policy?”

  1. Claims-made insurance policy:
    An insurance policy that provides coverage for claims arising from incidents that both occur and are reported to the insurance company while the policy is in force. A claims-made policy is in force from the starting date of the initial policy period (the retroactive date) and continues in force from that date through each subsequent renewal. When a claim-made policy is terminated, future claims arising from incidents that occurred during the policy period are not covered. However, the policyholder normally has the right to purchase an extended reporting endorsement.
    **This would be most useful for a business selling a product or service which has the possibility of future liability.

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