Liability · Insurance Term
Claims-Made Policy (Claims-Made Coverage)
Definition
A claims-made policy covers claims first made against you during the policy period, for events after a retroactive date. That differs from an occurrence policy, which covers events during the policy period no matter when the claim is made.
In Plain English
Professional and management coverages are often claims-made, including employment practices liability and directors and officers liability. Most general liability policies, by contrast, are occurrence policy forms.
Two dates matter. The retroactive date sets how far back the triggering events may go. The policy period sets when claims must be made and usually reported. If you let a claims-made policy lapse, claims made later may not be covered.
If you cancel, switch or sell, an extended reporting period, often called tail coverage, can let you report claims after the policy ends for events before it ended.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical: a property management company has a claims-made EPLI policy with a retroactive date of 2021. A former employee sues in 2026 over a firing in 2025. Because the claim is made during the 2026 policy and the event is after the retroactive date, the policy may respond.
What to Watch For
- Keep the same retroactive date when renewing or switching insurers.
- Report potential claims during the policy period, as the policy requires.
- Ask about tail coverage before canceling or selling a business.
- Know which of your policies are claims-made and which are occurrence.
Common Questions
Is claims-made coverage worse than occurrence coverage?
Not necessarily, but it requires care with retroactive dates and reporting. It is standard for some coverages.
What happens if I switch insurers on a claims-made policy?
Ask the new insurer to honor your existing retroactive date, so prior acts remain covered.
Last updated October 14, 2026 · Primesure editorial team · How We Write