The short answer
A claims-made policy covers claims first made during the policy period, often only if they are also reported during that period, for conduct after the policy’s retroactive date. These policies are common for professional liability, directors and officers, employment practices, and cyber coverage.
Why it matters
Claims-made coverage depends on timing. Switching insurers, letting a policy lapse, or reporting late can leave a gap where no policy responds, even though you were insured the whole time.
Where it fits in your case
When you receive a claim, when you learn of circumstances that could become one, and every time the policy renews or you change insurers.
What to expect
What counts as a claim. Often more than a lawsuit, including a written demand, an agency investigation, or a request to toll a deadline.
Reporting deadlines. Many policies require reporting within the policy period or a short window after. These deadlines are frequently enforced strictly.
Retroactive date. Conduct before this date is not covered. Keeping the same retroactive date when you change insurers is critical.
Prior knowledge. Claims you knew about, or should have expected, before the policy began may be excluded. Application answers matter.
Notice of circumstances. Reporting a potential claim early can tie it to the current policy.
Related claims. Several claims arising from the same facts may be treated as one, affecting which policy year, limit, and retention apply.
Tail coverage. An extended reporting period can cover claims made after a policy ends, for conduct during it.
What to do now
Report claims and potential claims promptly and in writing.
Answer application questions carefully at every renewal.
When changing insurers or selling the business, protect the retroactive date or buy tail coverage.
Keep a log of matters that could become claims.
What we need from you
Policies and applications for the past several years, the claim or demand, and the date you first learned of the underlying issue.
Common misconceptions
“It happened while we were insured, so we’re covered.” Under claims-made coverage, what matters is when the claim is made and reported.
“Only a lawsuit is a claim.” A demand letter may be enough to trigger reporting obligations.