Beginner explainer

Claims-made policy

A claims-made policy usually depends on when the claim is made and reported, not only when the work or incident happened.

Why this shows up

Many E&O and cyber policies are claims-made, so gaps in renewal, reporting, or retroactive dates can create problems.

What this changes for you

Claims-made wording makes timing very important. The policy period, retroactive date, reporting rules, and continuous coverage can all affect whether a future claim is covered.

What to check first

  • What is the policy period?
  • What is the retroactive date?
  • How quickly must a claim or potential claim be reported?

Example contract wording

Coverage shall be maintained on a claims-made basis with prior acts coverage no later than the start of services.

What to do next

  • Find the retroactive date on the quote or policy.
  • Keep renewal dates organized so coverage does not lapse.
  • Ask what to do if you learn about a possible claim.

Questions to ask

  • What retroactive date applies?
  • What happens if I switch carriers?
  • Do I need tail coverage if I cancel or sell the business?

Common mistake

Thinking only the date of the work matters. With claims-made coverage, when the claim is made and reported can matter too.

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