What is Claims-made and Report Coverage?
“Claims-made-and-reported” coverage is the most common type of coverage provided in professional liability insurance policies. It is distinguishable from “Occurrence” coverage in that the relevant date to determine coverage is when the claim is made and reported, not when the act or omission giving rise to the claim occurred. Most people are familiar with occurrence coverage from their auto or homeowners policy. With these types of insurance, the policy that covers a claim is the policy that was in effect on the date the event giving rise to the claim occurred (e.g. the auto accident or the hail storm). However, with claims-made-and-reported coverage, the key date is the date the claim is first made against the insured or the date the insured first becomes aware of facts or circumstances that might reasonably be expected to be the basis of a claim, NOT the date of the alleged error or omission by the insured. The claim generally must be reported to the insurer during the same policy pe
