What is characterized as a type of liability insurance that covers claims only if they are made during the policy period?

Claims-made coverage is a specific type of liability insurance that provides protection when a claim is made against the insured during the policy period, regardless of when the event that caused the claim occurred. This means that if a policyholder has a claims-made policy in place, they are only covered for claims that are reported to the insurer while the policy is active.

This type of coverage is particularly advantageous for professions where claims may arise long after the professional service has been rendered, such as in the fields of medicine, law, or consulting. It's essential for policyholders to maintain continuous coverage, as any gap in the policy could leave them unprotected for claims that may arise from past actions.

Occurrence coverage, on the other hand, protects the insured for incidents that occur during the policy period, regardless of when the claim is made. General liability coverage covers a broad range of claims, but it is not specifically tied to the time frame of when the claim is made. Auto liability coverage specifically pertains to claims made against vehicles and operates under similar principles to occurrence or claims-made coverage but does not apply to the entire spectrum of liability claims.