Claim made
Category: Policy structure · Reviewed by the Apex broking team · Last reviewed 2026-08-21 · ~2 min read
Category: Policy structure
Also known as: claims-made basis, claims-made-and-reported, claim first made
Related concepts: trigger clause, date of notification
Definition
Under a claims-made wording the connecting factor is the making of the claim, not the doing of the act. If a claim is first made against the insured while the policy is in force, that policy considers it, subject to the retroactive date, the exclusions and the notification conditions. Work carried out in earlier years is covered by the current policy, and work carried out this year will be covered by whichever policy is in force when the claim eventually arrives — which is why continuity matters so much.
When is a claim “made”?
Policies define this. A claim is usually a written demand for compensation or a written intimation of an intention to hold the insured responsible, and it is made when it is received by the insured, not when the claimant decides to bring it. Some wordings extend the definition to regulatory investigations, civil proceedings, arbitration or adjudication. Because the definition drives which year responds, it is one of the first things to read in a professional lines policy.
Claims-made and claims-made-and-reported
A pure claims-made wording asks only that the claim be first made during the period, and allows reporting within a reasonable time or within a stated extension after expiry. A claims-made-and-reported wording requires the claim to be both made and notified within the period (or within a short specified window). The second is narrower and less forgiving: a claim received in the final days of the period must be notified almost immediately. The effective date of that notice is dealt with in date of notification.
Retroactive date and prior knowledge
Two limits are always present. The retroactive date excludes claims arising from acts, errors or omissions before a specified date, so an unbroken chain of cover with an early or unlimited retroactive date is valuable. A prior knowledge or known circumstances exclusion removes claims and circumstances the insured knew about before inception. Together they mean a claims-made policy is only as good as the history behind it.
Run-off
Because the policy must be live to receive a claim, a business that stops trading, sells its business or changes basis needs run-off cover to keep a policy on risk for claims about past work. Run-off is normally bought for a period of years reflecting the limitation exposure of the work concerned.
Why it matters
Claims-made cover concentrates risk into a single decision each year: whether cover is renewed, on what limit, with what retroactive date, and whether everything known has been notified. A lapse, a reduced limit or an unnotified circumstance can remove protection for many years of past work at once. The wider comparison with occurrence and discovery bases is set out in trigger clause, and the notification discipline in notification of claim.
Frequently asked questions
If I did the work five years ago, which policy covers a claim made today?
Under a claims-made basis, the policy in force today, provided the work postdates the retroactive date and the matter was not known before that policy incepted.
What is the difference between claims-made and claims-made-and-reported?
Claims-made requires the claim to be first made in the period, with reporting allowed within a stated window. Claims-made-and-reported requires the claim to be both made and notified within the period or a short specified extension.
Why does a gap in claims-made cover matter so much?
Because the policy must be live when the claim arrives. A gap or a lapse can leave many years of past work with no policy able to respond, even though each of those years was insured at the time.
Related entries
- Trigger clause
- Date of notification
- Notification of claim
- Professional indemnity insurance
- Directors' and officers' insurance
This entry is part of the Apex Insurance Wiki. Last reviewed 2026-08-21. Next review: 2027-02-21. It is general reference information about UK insurance law and market practice, not regulated advice on a specific policy.
Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority (FRN 724952). This page is general information, not advice on a specific policy.