'Claims Made' is a term used to describe an insurance policy which provides cover for claims notified during the term of the policy. This is not necessarily the same time the actual incident or error occurred.
Professional indemnity policies provide a 'claims made' basis of cover because professional errors in construction, accounting, legal etc are often only discovered weeks, months or years after the error was made.
For example, if an error is made in 2013 but is not discovered until 2016, it is the 2016 PI policy / insurer that deals with that claim. Therefore a valid professional indemnity policy or 'run-off' policy must remain in force at all times for a claim to be met by an insurer.
For more information please email email@example.com or call us on 0345 251 4000.