What is a claims made policy?

A claims made policy is a type of insurance policy used in Rhode Island that provides coverage in the event of claims made against the policyholder for negligent acts or errors performed within the policy period. This type of policy differs from occurrence policies, which provide coverage for acts that occur during the policy period, regardless of when the claims are made. A claims made policy offers protection against claims made during the policy period, regardless of when the alleged incident occurred. Under a claims made policy, the policy period is the period during which the policyholder is insured for the claims of negligence or errors. The policyholder will continue to be insured for their current claims for as long as they keep renewing the policy. Under a claims made policy, insurers in Rhode Island will not pay for claims arising out of events that occurred prior to the inception date of the policy, unless the policyholder was previously insured for the same act or error, and the previous policy was continuous with the present policy. Claims made policies are popular among professionals such as lawyers, doctors, and accountants, as they provide pre-determined coverage limits. In addition, claims made policies typically involve lower premiums than occurrence policies, making them an attractive option for businesses and individuals.

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What is a claims made policy?

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