What are claims-made policies in professional liability insurance?

Coverage is provided only if the claim is made during the active policy period, regardless of when the incident occurred.

Claims-made policies cover claims filed during the policy period, regardless of when the incident occurred, as long as it falls within the retroactive period specified in the policy.

A consultant’s claims-made policy covers a lawsuit filed for work completed two years earlier because the incident occurred within the retroactive period.

Add tail coverage if you plan to retire or close your business to cover potential claims filed after your policy expires.