Section 8.9 Reporting Matters to the Carrier That Have Not Yet Given Rise to a Claim

• Library: Insurance Practice 2015

Coverage with a claims-made policy is triggered at the time of the report to the insurer. But what if the insured is aware of an act, error, or circumstance that has not yet risen to the level of a claim?

Typically, the problem is resolved by the use of a “discovery clause” in the claims-made policy. The discovery clause allows the insured in the claims-made policy to report potential claims to the insured’s carrier. Even though a claim has not formerly been made at the time of the report, coverage is...