What does Claims Made Policy mean? Read on to discover the definition & meaning of the term Claims Made Policy - to help you better understand the language used in insurance policies.
Claims Made Policy
A policy providing coverage that is triggered when a claim is made against the insured during the policy period, regardless of when the wrongful act that gave rise to the claim took place. (The one exception is when a retroactive date is applicable to a claims-made policy. In such instances, the wrongful act that gave rise to the claim must have taken place on or after the retroactive date.) Most professional, errors and omissions (E&O), directors and officers (D&O), and employment practices liability insurance (EPLI) is written as claims-made policies.
We hope the you have a better understanding of the meaning of Claims Made Policy.