What conditions might trigger a claims-made policy?
The following conditions may trigger a claims-made policy: • The insured receives their first knowledge of a claim or potential claim during the policy period; • The claim or potential claim should be reported pursuant to the terms and conditions of the policy and during the policy period; • The negligent act, error or omission giving rise to the claim must occur after the “prior acts or retroactive date” that is set forth in the policy; It is very important to note that insurance carriers may define “first knowledge” differently. A good risk management practice would be to report the claim or potential claim to prevent any possible coverage declination for failure to report timely. Read your insurance policy carefully to get a full understanding of the insurance carriers claim reporting guidelines. If you have questions, talk to your insurance agent.
