What is a claims made policy?

A claims made policy is a type of insurance coverage that only applies to claims that are reported within a specified time frame. This type of policy is commonly used in South Carolina and is designed to provide protection to those insured against any liability they may incur due to an act or wrong doing during the policy period. With a claims made policy, the policyholder is required to purchase additional coverage (known as extended reporting period coverage) to ensure that all claims reported within the specified time frame are covered. This coverage is valuable, as it helps policyholders protect against any potential losses incurred in the future, even after the original policy has expired. Claims made policies are often more affordable than occurrence-based policies, as they only cover claims reported within the specified time period. This type of policy, however, may not provide adequate coverage for some types of liability that may not be recognized until after the policy has expired. It is important to carefully review a claims made policy to make sure that it provides the necessary coverage for the anticipated risks.

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What is a claims made policy?

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