What is a claims made policy?

A claims made policy is a type of insurance policy commonly used in the state of Florida. It is used to provide coverage for legal claims that are made against a person or business during the policy period. This means that the coverage only extends to claims that are made during the time that the policy is in effect. Unlike an occurrence policy, which provides coverage for claims made at any time regardless of when the policy was active, a claims made policy will not cover any claims that are made after the policy has expired. For example, if a policy is in effect from January 1st to December 31st and a claim is made in January of the following year, the policy would no longer be active and would not cover the claim. Claims made policies are most commonly used by professionals, such as doctors, lawyers, and accountants, who face a higher potential risk of lawsuits. The advantage of these policies is that they are often cheaper than occurrence policies, yet provide protection against claims made during the policy period. However, it is important to note that if the policy lapses or ends, the person or business may no longer be covered for claims made after the policy’s expiration date.

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What is a claims made policy?

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