CLAIMS & POLICY MECHANICS
Claims-made definition
Claims-made is a liability policy basis that covers claims first notified and reported to the insurer during the policy period, regardless of when the loss occurred.
In practice, this means a form of liability policy that covers all claims first notified and reported to the insurer during the year that the policy is in force or during any applicable extended reporting period, irrespective of when the injury or loss occurred. Antonym: losses-occurring. This gives insurers, brokers, reinsurers and risk managers a shared way to discuss the concept when reviewing policies, claims, regulation or market data.
This term is especially useful in liability insurance, claims handling and policy wording. It helps determine when cover applies and what obligations exist under the insurance contract. It also helps users compare how insurance is structured, regulated, priced or claimed across different markets.
Claims-made is closely related to losses-occurring, liability insurance, extended reporting period and policy period. Linking these concepts together helps build a clearer glossary structure and gives readers a stronger understanding of how individual insurance terms connect within wider international insurance practice.
At a glance
- Used in
- Liability insurance, claims handling and policy wording.
- Purpose
- Helps determine when cover applies and what obligations exist under the insurance contract.
- Important because
- Clear definitions support better comparison of insurance products, market practices and regulatory requirements across jurisdictions.
- Related terms
- losses-occurring, liability insurance, extended reporting period and policy period.
Example of a claims-made policy
A professional firm receives a negligence claim during the policy period. A claims-made policy may respond if the claim is first reported within the required timeframe.