What is a claims made policy?

A claims made policy is a type of insurance policy that covers claims made against a policyholder during the policy period. This type of policy is commonly used in South Dakota for professional insurance, such as for a lawyer, doctor, or engineer. This type of policy provides coverage for a specific period of time, and any claims made during this period will be covered by the policy. When a claims made policy is in effect, the policyholder is covered for any claims made against them during that time period, regardless of when the incident occurred. For example, a doctor may have a policy that covers them for any claims made during the policy period, even if the incident occurred several years ago. The main benefit of a claims made policy is that it can provide coverage for incidents that may have occurred before the policy period began. This type of policy also protects the policyholder from any claims that may arise after the policy period ends. Although the policy period lasts for a certain amount of time, the carrier may extend the policy period or offer a tail coverage. With a tail coverage, any claims made after the policy period ends may be covered, depending on the terms of the policy. Overall, a claims made policy is an important type of insurance that provides coverage for policyholders in a variety of situations. This type of policy is particularly important for professionals that may need to protect themselves from any potential claims.

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