What is a Claims-Made Insurance Policy?

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.

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

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

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

only for losses which occurred after the retroactive
date and were reported

during the policy period, or extended reporting

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.

hope it helps you make a better decision when

purchasing your insurance.

hope you have an absolutely wonderful day.