Claims‑Made Policy
What Is a Claims‑Made Policy?
A claims-made policy covers claims that are filed during the policy period, after the retroactive date, or during an extended reporting period. Under this policy, your coverage is more limited because you can only report claims during your “active policy” window.
Why It Matters for Beauty and Bodywork Professionals
It’s crucial to understand whether your policy is claims-made or occurrence-based, as this affects when you can file claims (and receive payouts!).
- Late complaints happen: A client may report an issue months after a service
- Avoid gaps: Keep your retroactive date intact when you switch carriers
- Plan for pauses: Consider a tail (extended reporting) if you stop practicing
- Right form for the risk: Professional liability is often claims-made; general Liability is often occurrence
What Are Key Terms to Know for Claims-Made Insurance Policies?
These are must-know terms related to claims-made policies:
- Retroactive Date (Retro): The earliest date work is covered under the policy
- Prior Acts Coverage: Allows a new policy to honor your existing retro date when you switch carriers
- Extended Reporting Period (Tail/ERP): Extra time to report claims after a policy ends
- Continuity: No lapses between policies (keep renewals timely to protect your retro date)
- Notice/Reporting: When you report or give your insurer a notice about a triggering event
Claims-Made vs Occurrence Policy: What’s the Difference?
An occurrence policy lets you file a claim at any time — even after your policy ends. With a claims-made policy, you can only file if your policy is active.
Swipe →
| Feature | Claims-Made | Occurrence |
|---|---|---|
|
When it pays |
Claim is reported during the active policy period |
Event happened during the policy period |
|
Retroactive date |
Yes (must be on or after the retro date) |
No |
|
After you cancel |
Need a tail (ERP) to report later
|
Not needed for incidents that happen when coverage is active |
|
Typical use |
Professional Liability |
General Liability |
|
Best for |
Managing coverage and cost |
Long-term peace of mind |
Occurrence policies are the industry standard for coverage, which is why Beauty & Bodywork Insurance (BBI) offers it automatically on our professional policy. Get peace of mind for “later” claims with BBI’s occurrence coverage!
Additional Resources
Related Terms
- Occurrence Policy
- Insuring Agreement
- Insurance Claim
- Policy Period
