What is a liability insurance policy that covers injuries for which a claim is made called?

A liability insurance policy that covers injuries for which a claim is made at the time the claim is presented is known as a claims made policy. This type of policy is designed to provide coverage for claims arising from incidents that occur during the policy period, but the key aspect is that the claim must also be made while the policy is still in effect. This means that if a claim is filed after the policy has expired, the insurer is not obligated to cover that claim, even if the event leading to the claim occurred while the policy was active.

In comparison, an occurrence policy covers any events that happen during the policy period, regardless of when the claim is actually made. This means that even if the claim is filed years later, as long as the incident occurred while the policy was active, it will be covered.

Understanding these distinctions is crucial for professionals handling liability insurance, as they directly impact how and when coverage is provided. Claims made policies are particularly important in industries with a high risk of liability, as they require careful management of policy terms and renewal processes to ensure continuous coverage.