What is a claims made policy?

A claims made policy is a type of insurance policy commonly used in Minnesota for professional liability insurance. This type of policy covers claims made against an individual or business during the policy period, but does not provide coverage for past events. Claims made policies are beneficial for businesses since they generally provide broader coverage due to their expansive definition of “claims made”. For example, the policy may cover claims which arise while the policy is active, even if the incident causing the claim happened prior to the policy effective date. This coverage is limited to the policy period, however, so any claims made after the policy period will not be covered. Claims made policies are also beneficial for businesses since they typically have longer reporting periods following the policy period. This means that businesses have more time to report claims that may arise after the policy period ends. Overall, claims made policies are a type of insurance policy that provides coverage for claims made against an individual or business during the policy period. This type of policy is beneficial for businesses since it usually provides broader coverage, and has longer reporting periods.

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What is a claims made policy?

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