When it comes to insurance, understanding the nuances of different policies can be crucial. One such policy type is ‘Claims Made’ insurance, often utilized in various sectors like Professional Indemnity, Management Liability, Cyber Liability, and Asbestos Liability, among others. The core principle of these policies is to provide indemnity or liability coverage for claims stemming from incidents that both happen and get reported within a specified policy period.
For businesses and professionals, especially those operating in fields prone to legal claims or liabilities, ‘Claims Made’ policies offer a specific form of protection. This protection extends to incidents that are reported during the active policy period, regardless of when the incident actually occurred. This is in contrast to other types of insurance like ‘Occurrence’ policies, where coverage depends on when the incident itself happened, rather than when it was reported.
In the realm of Cyber Liability insurance, ‘Claims Made’ policies are particularly relevant. With the increasing prevalence of cyber threats and data breaches, businesses are seeking robust insurance coverage to mitigate potential damages. Cyber ‘Claims Made’ policies ensure that claims related to cyber incidents, such as data breaches or hacking, are covered as long as they are reported during the policy period. This proactive approach to coverage is valuable in the fast-evolving landscape of cyber risks.
(Response: Yes, ‘Claims Made’ insurance policies are made to cover claims arising from incidents reported during the policy period.)