What type of policy will pay when the claim is made during the policy period even though the loss occurred before the policy period?
Asked by: Prof. Gertrude Hirthe II | Last update: March 10, 2025Score: 4.7/5 (55 votes)
Which type of policy will only cover a claim if the claim and incident occurred during the coverage period and the policy is active?
An occurrence policy provides coverage for covered incidents that occur during the policy period, regardless of when the claim is filed. This form would cover losses even if the claim comes in after the policy is canceled as long as the covered incident occurred within the timeframe of the initial coverage.
What type of policies are claims-made?
A claims-made policy is a type of insurance policy most commonly used to cover the risks associated with business operations. For example, these policies are often used to cover the potential for mistakes associated with errors and omissions (E&O) in financial statements.
What is an occurrence-based policy?
An occurrence-based policy covers losses that happen during the time you have the policy, regardless of when you file a claim. It is designed to protect you against long-tail events – incidents that could cause injury or damage years after they occur.
What does the CGL policy cover?
Commercial General Liability (CGL) insurance protects business owners against claims of liability for bodily injury, property damage, and personal and advertising injury (slander and false advertising).
What Is A Claims Made Policy?
What does EPLI cover?
EPLI, on the other hand, covers a business's legal expenses if it is sued over an employment-related issue, such as discrimination, harassment, wrongful termination or workplace torts.
Does CGL cover loss of use?
The starting point is the CGL's Coverage A which typically provides coverage for “bodily injury and property damage liability”. In turn, “property damage” is typically defined to include the “loss of use of tangible property that is not physically injured”.
What is an occurrence in CGL policy?
Most CGL policies define an “occurrence” as “an accident, including continuous or repeated exposure to substantially the same general harmful conditions.” Most policies are silent as to what constitutes an “accident.” Illinois courts have found that “accident” means “an unforeseen occurrence, usually of an untoward or ...
Which of the following insurance policies cover incidents that occurred before the beginning?
Prior acts coverage is an insurance policy feature that covers claims made on insurable events that occurred prior to a policy's purchase. This simplifies insurance matters for holders of liability insurance who change insurance providers.
What is tail coverage on a claims-made policy?
Tail coverage is an endorsement (or an addition) to your insurance that allows you to file a claim against your policy after it expired or was canceled. It applies to claims-made insurance policies and typically involves paying your insurer an additional fee.
What is the claim policy?
A claim of policy argues that certain conditions should exist, or that something should or should not be done, in order to solve a problem.
What are the 3 major types of claims?
There are three types of claims: claims of fact, claims of value, and claims of policy. Each type of claim focuses on a different aspect of a topic. To best participate in an argument, it is beneficial to understand the type of claim that is being argued.
What is a claims paid policy?
A claims-paid policy is a liability insurance policy that is triggered at the time a claim is paid, rather than at the time a claim is first reported (claims-made policy) or at the time the injury or damage occurs (occurrence policy).
What policies are claims made?
What is a claims-made policy? With a claims-made policy, your coverage only kicks in when you file a claim during the policy period. As long as an insurable event happened after the policy's retroactive date, your insurer should provide coverage. A claims-made policy covers claims filed while your insurance is active.
What is a policy that protects against claims above and beyond the amount covered by primary policies?
Umbrella insurance is extra insurance that provides protection beyond existing limits and coverages of other policies. Umbrella insurance can provide coverage for injuries, property damage, certain lawsuits, and personal liability situations.
What is a policy that covers only those claims made or reported during the policy year?
A claims-made policy only covers incidents that happen and are reported within the policy's timeframe, unless a "tail" is purchased.
What type of policy covers incidents that happen and are reported while the policy is in force?
Claims-Made Policy Form
Claims-made policies offer coverage for claims that occur and are reported while the policy is in force. Once the policy expires, coverage expires.
Which of the following events will not be covered by an insurance company?
Personal accident cover policies exclude injuries or deaths from war, terrorism or nuclear radiation. These events are considered high-risk and unpredictable, which is why these do not fall under compulsory personal accident cover.
What is coverage of the insured party for all injuries and incidents that occurred while the policy was in effect regardless of when?
Occurrence. A liability insurance policy that covers claims arising out of occurrences that take place during the policy period, regardless of when the claim is filed.
What is an occurrence made policy?
What Is an Occurrence Insurance Policy? An occurrence policy provides coverage for incidents that happen during your policy period, regardless of when you file a claim. These policies can be more expensive than a claims-made policy because of how long coverage applies.
What is a single occurrence?
Single Occurrence means all causes or events which occur within 96 consecutive hours of the first cause or event causing loss or damage, shall be considered as one occurrence.
What is included in a CGL policy?
The commercial general liability (CGL) insurance policy is the most common business insurance policy in America. This broad coverage insures businesses against property damage or bodily injury claims that arise out of your actions to others.
What is an occurrence in CGL?
In a commercial general liability (CGL) coverage form, an occurrence is an accident, including continuous or repeated exposure to substantially the same general harmful conditions.
What will loss of use cover?
If you were forced to move out of your house or even a rental property due to damage caused by a fire, for instance, loss of use insurance would help to cover costs such as your hotel stay, rental or a temporary apartment or restaurant bills while your residence is being repaired or rebuilt.
What is excluded under the CGL policy?
Intentional Acts
In most cases, if an insured knowingly violates someone else's rights, the CGL does not cover that insured. This would include publishing something the insured knows is false and committing criminal acts that result in injury.