Before you read this you must understand that the information provided here is “in general terms” and NOT specific to you, your policy or your State in which you have a policy. The information provided here “IS” for you to read and try to understand. If after you read this you still do not understand it the you are in dire need of assistance. You could be in peril of not having purchased the correct type of policy or have not purchased and “extension” of coverage.
“Please, if you are in doubt consult with your agent! Our service reviews are free, generally take about 72 hours provided we have some chance of quoting and writing your business. “
The following form types apply to both General Liability, Officers & Directors Liability, Employment Practices Liability and Professional Liability…aka “errors & omissions” (there are others)
The first and most widely used claims-made form today is the “Claims-Made & Reported Form.” This policy requires that the “claim” be made during the policy period or ERP, and reported during this same period of the policy currently in force at the time. A typical policy declaration page of this type may read: “This is a Claims-Made Policy. This Policy covers only those Claims first made and reported against the Insured during the Policy Period or ‘ERP,’ if applicable.”
For more information and a great example see this article presented by Insurance Journal.com here
A limitation on the “tail” or claim reporting period. This can vary from policy to policy. Some of the common time periods are two or three years. What does this mean? It means that if you purchased a policy with a Sunset provision of say for example two years…and a subsequent claim was presented after the two year point in time. There is no coverage.
This is the better form to have as it allow for the “longest” reporting for among the others. What does this mean? This mean, and take this with a grain of salt, you are covered for the period of time that State law allow you to be sued for under the statue of limitations. For a general contractor performing operations on new home construction from the ground up this could be many, many years. Remember your policy or any policy will and can vary from State to State Carrier to Carrier. See your actual policy for details. If you are in need of a policy review you can fax, email or mail your policy to us for review. Reviews require time and in some instance investigation. Allow up to 72 hours for a review. Reviews are provided by our Agent / Broker for free provided we are granted some chance of quoting your business.
This form is something “less than” the full occurrence form. Premiums are generally less because of the “shortening” of the time period for reporting.