Claims Made Basis

A Claims Made Basis is a way insurance coverage is structured, where a policy covers claims made or reported during the policy period. If a claim is filed while the policy is active, it’s covered, even if the incident happened earlier. However, if the claim is made after the policy has ended, it generally isn’t covered, unless there’s retroactive coverage or an extended reporting period. This approach emphasizes timely reporting of claims during the policy, rather than claims for past incidents, providing flexibility but requiring careful monitoring of claim filings.