If you have Professional Liability coverage, make sure you understand whether it is a “claims-made” or “claims-made-and-reported” policy. The latter can be a trap.
Both types of policies trigger coverage when the claim is made. The difference lies in when the claim must be reported to the insuring company. In a “claims-made” policy, the claim must occur during the policy term and be reported “as soon as possible” or “as soon as practical,” which may be after the end of the policy term. A “claims-made-and-reported” policy has much more stringent reporting provisions, which may cause issues for claims arising late in a policy period if they are not reported before the policy term ends or shortly after.
Take some time to understand your coverage. For Professional Liability insurance quotes, Contact Us Now! We are located in Austin and licensed in Texas.