Master Claims Made vs Occurrence Insurance Secrets Today

Claims-Made Insurance: A Deep Dive

Claims-made insurance policies cover claims only if the policy is active both when the incident occurs and when the claim is filed. This type of policy is particularly prevalent in professional liability insurance, such as malpractice insurance for doctors or errors and omissions insurance for consultants. One of the key advantages of claims-made policies is their typically lower initial premiums compared to occurrence policies. However, they require careful management, especially when switching carriers or retiring, as gaps in coverage can leave you vulnerable. Tail coverage, which extends the reporting period for claims, is often recommended to mitigate this risk¹.