Claims-Made Policy Law and Legal Definition

A claims-made policy is an insurance policy in which an insurer agrees to indemnify against all claims only during the term of the policy or within a specified period after expiration of the policy, regardless of when the incident that gave rise to the claims occurred. However, with respect to a future claims an insurer will have no responsibility. Any claim filed after a coverage period can get indemnified, if the insured purchases an extended time for reporting. It is also called discovery policy.

In Doctors Co. v. Health Mgmt. Assocs., 943 So. 2d 807 (Fla. 2nd DCA 2006), the court observed that “a claims-made policy provides coverage for any claim that actually is made during the policy period arising out of an incident which actually occurred during the period. A claim under that coverage must include a claim for money damages”.