What does Claims Made Multiplier mean? Read on to discover the definition & meaning of the term Claims Made Multiplier - to help you better understand the language used in insurance policies.
Claims Made Multiplier
A factor applied to rates used for a claims-made commercial general liability (CGL) policy, depending on how long an insured has been in a claims-made program. The insured receives a larger credit its 1st year in a claims-made program, and the credit is reduced in each subsequent year (unless the retroactive date is advanced). The credit virtually disappears in the 5th claims-made year.
We hope the you have a better understanding of the meaning of Claims Made Multiplier.