A claims-made policy provides cover for claims that are made and reported while the policy is active. It does not matter when the work was done. What matters is when the claim is made and whether your policy is in force at that time.
Even if the incident occurred years earlier, you must have a current policy in place when the claim is first notified in order to be covered. This is why maintaining continuous cover is important.
If you retire, sell your business or stop trading, you may need run-off insurance to remain protected against claims relating to past work.
Common types of insurance that are issued on a claims-made basis include:
- Professional Indemnity
- Management Liability
- Directors and Officers Insurance
- Cyber Insurance (depending on the insurer)
- Medical Malpractice Insurance
These policies all respond based on when the claim is made, not when the event occurred.
You can read more about how claims-made insurance works here.
Contact us if you are unsure whether your policy is claims made or if you need help arranging continuous or run-off cover.
