Which type of insurance coverage typically handles claims made during a project?

Claims made insurance is specifically designed to cover incidents or claims that arise and are reported during the policy period. This type of insurance is particularly useful for professionals who may encounter claims related to their services after a project is completed, as it ensures coverage as long as the claim is made while the policy is active. It is different from occurrence-based coverage, where a claim is covered as long as the event took place during the period the policy was in effect, regardless of when the claim is actually reported.

In the context of project-related claims, this type of coverage allows businesses to manage risks more effectively since it provides a clear timeframe for when claims can be filed, making it critical for those in industries where timely reporting is essential, such as construction or professional services. This understanding helps professionals mitigate the potential fallout from claims, ensuring they are financially protected when a claim arises during the execution of a project.

Other insurance options mentioned, while important, do not specifically focus on claim reporting timelines in the same way. For instance, general liability insurance broadly covers bodily injury and property damage claims but doesn’t specifically address the timing of when claims are made. Professional liability insurance generally covers claims related to professional services or advice provided but can also have its own complexities in terms of