What does "claims made" coverage refer to?

"Claims made" coverage specifically refers to insurance policies that provide coverage only for claims that are made during the active policy period, even if the incidents that led to the claims occurred before the policy was in place. This means that if a claim is filed after the policy has expired, it will not be covered, regardless of when the incident occurred.

This type of coverage is crucial for professionals, such as lead abatement supervisors, because it delineates a clear timeframe in which claims must be reported to ensure coverage. This is different from other types of coverage where incidents can be reported at any time, regardless of the active policy status.

Understanding "claims made" coverage is key for managing risk effectively, as it emphasizes the importance of maintaining continuous insurance, especially in fields with a high potential for liability. It ensures that professionals are encouraged to report issues promptly, knowing that coverage is contingent on the timing of the claim rather than the incident.