What type of insurance policy only covers claims that are reported during the policy period?

The type of insurance policy that only covers claims reported during the policy period is known as a claims-made policy. This means that for any claim to be covered, it must not only occur during the policy period but also be reported to the insurer within that same period. This contrasts with other types of policies, which may cover events that occur during the policy period even if claims are reported after the policy has expired.

Occurrence policies, for instance, provide coverage for incidents that happen during the policy term, regardless of when the claims are reported, which offers broader protection. Therefore, a claims-made policy has its unique feature of requiring both occurrence and reporting within the designated timeframe, making it essential for policyholders to remain aware of their coverage periods and claim reporting procedures.

Life insurance policies typically do not fit this context as they cover the insured individual’s life, rather than based on claim occurrences or reports. Understanding these different policy types is vital for anyone involved in insurance, particularly in areas such as residential care and assisted living, where liability and professional risks are pertinent.