When the standard
claims-made policy is issued, the trigger is when notice of the claim for damages because of bodily injury or property damage is received and recorded by the insured or insurer, whichever is first.
That's a basic requirement for coverage under a
claims-made policy.
That said, if there exists one or more completely dispositive bases to deny coverage, such as the claim against the insured having been first made before the policy period of a
claims-made policy, the investigation need not widen to determine facts that will not be covered regardless of their importance to the insured's case.
If the coverage is canceled or non-renewed, and not replaced with another
claims-made policy, Contractor must purchase extended reporting coverage for minimum of five (5) years after the termination of this agreement.
In effect, with a
claims-made policy, the insured must have the policy in effect when the alleged incidence of malpractice occurs and also have the policy in effect when the claim is filed.
The
claims-made policy generally requires the insured to report any claims to the insurer during the policy period or a time period specifically prescribed in the policy.
Physicians renewing a
claims-made policy are covered from the first year that they owned the policy.
With a
claims-made policy, it doesn't matter when the occurrence took place and it is clear which policy should respond to the claim.
If a
claims-made policy is discontinued, the doctor must obtain "tail" coverage to cover past actions.
Coverage for prior actions can become challenging in the event that a physician has a
claims-made policy, which offers protection only while the policy is in effect.
In fact, a key to distinguishing a
claims-made policy from an occurrence policy is the very absence from an occurrence policy of a discovery or manifestation requirement.
Tail insurance, formally known as extended reporting period, continues your ability to defend claims after the
claims-made policy is out of force.
