Claims-Made Policy
Key Takeaway
A type of insurance policy that provides coverage only when a claim is first reported to the insurer during the active policy period, regardless of when the underlying incident occurred. The claim must arise from an act committed on or after the policy's retroactive date.
Definition
A type of insurance policy that provides coverage only when a claim is first reported to the insurer during the active policy period, regardless of when the underlying incident occurred. The claim must arise from an act committed on or after the policy's retroactive date. This is the standard policy form for legal malpractice insurance.
Why This Matters for Law Firms
Understanding this concept is essential for law firms because it directly affects how your coverage responds when a claim is filed. Misunderstanding policy structure terms can leave your firm exposed to uninsured losses, particularly during carrier transitions or when claims surface years after the underlying work was performed.
Example Usage in Context
A managing partner reviewing the firm's renewal materials might ask the broker: "Can you confirm our claims-made policy aligns with what we had under the prior carrier? We want to make sure there are no gaps in our retrospective protection."
Related Q&A
Related terms
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