What type of claims does a claims made basis insurance policy cover?

What type of claims does a claims made basis insurance policy cover?

• A. Any claims made after project completion
• B. Claims that the insured is aware of during the policy period
• C. Environmental claims from previous projects
• D. Claims from future projects only

Answer: (B)

A claims-made basis insurance policy specifically covers claims that the insured is aware of during the policy period. This type of policy provides protection for claims that arise from incidents that occur and are reported while the policy is in effect. It is crucial to understand that under this policy, the insured must report the claim or the circumstances leading to the claim to the insurer during the active policy period, even if the actual incident occurred prior to the policy start date, as long as the claim is made after the policy begins. This structure means that it is essential for professionals insured under a claims-made policy to be vigilant about reporting any potential issues as they arise during the policy coverage. By doing so, they ensure their eligibility for coverage if a claim emerges. In contrast, claims from future projects, environmental claims from previous projects, or claims made after project completion do not fall within the protective umbrella of a claims-made policy, as they do not align with the requirement of reporting during the active policy duration.

A claims-made basis insurance policy specifically covers claims that the insured is aware of during the policy period. This type of policy provides protection for claims that arise from incidents that occur and are reported while the policy is in effect. It is crucial to understand that under this policy, the insured must report the claim or the circumstances leading to the claim to the insurer during the active policy period, even if the actual incident occurred prior to the policy start date, as long as the claim is made after the policy begins.

This structure means that it is essential for professionals insured under a claims-made policy to be vigilant about reporting any potential issues as they arise during the policy coverage. By doing so, they ensure their eligibility for coverage if a claim emerges. In contrast, claims from future projects, environmental claims from previous projects, or claims made after project completion do not fall within the protective umbrella of a claims-made policy, as they do not align with the requirement of reporting during the active policy duration.