Discovery Policy Law and Legal Definition

Discovery policy refers to an agreement to indemnify against all claims made during a specified period. It is regardless of when the incidents gave rise to the claims occurred. It is also known as claims-made policy.

A discovery policy is one wherein the coverage is effective if the negligent or omitted act is discovered and brought to the attention of the insurance company during the policy period. It is also an occurrence policy wherein the coverage is effective if the negligent act or omission occurs during the policy period, regardless of the date of discovery. In Ranger Ins. Co. v. United States Fire Ins. Co., 350 So. 2d 570 (Fla. Dist. Ct. App. 3d Dist. 1977), it was held that discovery policies permit recovery for any errors or omissions regardless of whether occurring during the policy period as long as the claim is made during the policy period.