Which policy type provides coverage for claims only if they occur during the specified policy period?

A claims-made policy is specifically designed to provide coverage for claims that are reported to the insurance company within a certain timeframe, provided that the event leading to the claim occurred during the specified policy period. This means that the policy only covers claims that arise from incidents that happen after the policy is in effect and before it expires, regardless of when the claim is reported. This structure is particularly important in areas such as professional liability insurance, where the timing of the incident and the reporting of the claim can significantly impact the coverage.

The occurrence policy, on the other hand, covers claims for incidents that happen during the policy period, regardless of when the claim is reported, which is different from the claims-made approach. An annual policy generally refers to policies that renew annually but does not specify the claims process directly related to reporting. A lifetime policy, while it suggests coverage for a lifetime, doesn’t specify the timing of claims related to the policy period.

In contrast to these types, the claims-made policy distinctly focuses on the connection between the timing of the incident and the reporting under the policy's terms. This makes it essential for policyholders to be aware of their reporting obligations to ensure claims are covered.