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Contact Us
- Toll Free: 866.304.9909
- Phone: 856.692.7702
- Fax: 856.691.0059 *Coverage cannot be bound through voice mail
- Email: info@PLIGofSJ.com
- Address: 630 South Brewster Road
Suite B3
Vineland, NJ 08361
FAQ's & Info
Claims Made Policy
A Claims Made policy responds to a claim if two requirements are simultaneously met. The claim must be reported during the policy period AND the claim must be triggered by an event that occurred on or after the policy Retroactive Date. The retroactive date will continue to appear on each successive Claims Made policy, thus making these types of policies portable. The net result of this portability is coverage for what is known as Prior Acts by the new insurance company. A Claims Made policy with a retroactive date that is earlier than its inception date demonstrates how the transfer of potential prior unknown liabilities from one insurance carrier to another carrier can occur. This is a feature unique to the Claims Made policies. However, it is important to keep in mind that it is up the discretion of the insurance carrier’s underwriter to determine which retroactive date will be utilized for the current policy to be written. One important aspect of a Claims Made policy, providing the two requirements stated above are met, is that regardless of when a claim is made, the Claims Made policy you currently have in force will respond to that claim. Whenever you are deciding between an Occurrence policy and a Claims Made policy, you should consider all of this information and speak with your Broker about your options.
Example:
| Claims Made policy effective date: | August 1, 2001 |
|---|---|
| Coverage continuous for 6 years: | August 1, 2001 to August 1, 2007 |
| Claim submitted: | in February 2007 |
| Event occurred: | in 2003 |
| Claims Made Policy that responds: | Policy in force in February 2007 up to limits of that policy |