bursa cpns - Hello.
My name's Ryan Hanley; I'm the Director of
Marketing for the Muray
Group Insurance Services.
Today, we're dipping into the mailbag.
Today's
question comes from Sara, who owns a small
professional firm just outside
of Saratoga, New York.
Sara asks: Dear Ryan, what is a claims-made
insurance policy?
I love that Sara asked this question, because
it means
she's looking deeper into her insurance policies,
in this case, her
professional liability policy.
A claims-made insurance policy is commonly
used with professional liability
insurance, such as directors and officers
insurance, accountants or legal
liability insurance, and errors and omissions
policies.
In a claims-made
insurance policy, coverage is triggered by
the date the insured first
became aware of the possibility that a claim
may have occurred; this is the
incident, and the insured has notified their
insurance carrier of such
knowledge.
The insurance policy in force on the date
the insured was made
aware is the insurance carrier that will respond
to the claim.
The policy
period for a claims-made policy extends backward
to the retroactive date,
which is usually the date of the very first
professional liability policy
you purchased for your business.
Therefore, the policy will provide
coverage for claims made today, stemming from
actions or events all the way
back to that retroactive date.
A claims-made policy requires the claim to
be made during the policy period or an extended
reporting period of an in
force policy.
The most widely used claims-made policy provides
coverage
only for losses which occurred after the retroactive
date and were reported
during the policy period, or extended reporting
period.
Most professional liability insurance carriers
have begun to get away from
claims-made policies in exchange for occurrence
policies, which are very
similar if not in some cases handled the exact
same way as a commercial
general liability policy or your business
owner's insurance policy.
Sara, thank you for your question.
I hope that this response helped.
I know
it was brief, but I didn't want to dive too
deep in this video.
It's a very
important topic for anybody who has professional
liability, they should
understand what claims made is.
If you'd like to submit an insurance-
related question, be it personal, business,
or life insurance-related,
please use the comment section below this
video, and I'll make sure to get
your answer as soon as possible.
If you haven't already, click the box on
my right, you can see it right here.
Download your free copy of 'The 37
Free Home Maintenance Tips Guide'.
This is a guide that we put together to
improve the value of your home and reduce
the chance that you ever
experience and insurance claim.
The tips are relatively basic, but they're
definitely going to help you keep money in
your pocket, where it should be.
My name is Ryan Hanley.
I hope you enjoyed the answer to this question.
I
hope it helps you make a better decision when
purchasing your insurance.
I
hope you have an absolutely wonderful day.
