What is a claims made policy?

A claims made policy is a type of insurance policy commonly used in Indiana that is relevant to insurance law. A claims made policy covers a person against any claims that are made against them during the time the policy is active and in some cases will cover the policy holder if the claim arises from incidents that happened before the policy was purchased. In this type of policy, the insurer is responsible for losses that occur during the active coverage period and sometimes for events that happened beforehand. The insurer will not provide coverage for any claims that arise after the policy has expired or been cancelled. It is important to note that if a company or individual wishes to switch from a claims made policy to another form of coverage, they must purchase a special type of insurance called tail coverage. One major benefit of a claims made policy is that premiums tend to be lower since the insurer is only covering losses from the coverage period. However, there is also a greater risk for the policy holder since they will not be covered for any claims that arise after the policy has expired. It is important for policy holders to review their policy to ensure they understand their rights and responsibilities if a claim is made against them.

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What is a claims made policy?

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