A type of coverage trigger that obligates an insurer to defend and/or pay a
claim on an insured's behalf, if the claim is first made against the
insured during the period in which the policy is in force. (The term
"made" means notification to an insured that a demand for money or
services is being requested.)
For example, assume that a policy containing a claims-made coverage trigger is
written with a term of January 1, 2015-2016. Coverage will apply to claims made
against the insured during this time period.
Claims-made coverage is in contrast to policies written with an occurrence
trigger, whereby coverage applies to incidents occurring while the policy is in
force—regardless of when the claim arising out of that incident is made against
the insured. Thus, under an occurrence policy with a term of January 1,
2015-2016, coverage would apply to claims arising from incidents that occurred
during the January 1, 2015-2016, period, irrespective of when the claims are
made against the insured or reported to the insurer.
Although claims-made policies are most often used to write professional and
directors and officers liability policy forms, they are occasionally found in
commercial general liability (CGL) policies.