What does a standard claims-made errors and omissions insurance policy cover?

A standard claims-made errors and omissions insurance policy provides coverage specifically for claims that are filed during the time the policy is in effect, as well as claims that arise from incidents that occurred during the policy period. This means that if a claim is made against a professional for an error or omission that happened while the policy was active, the policy would respond to that claim, given that all other terms and conditions are met.

This type of insurance operates on a "claims-made" basis, meaning it is crucial for the policy to be active when the claim is made, which provides both the insured and the insurer with a clear timeline of coverage. It emphasizes the importance of maintaining continuous coverage to ensure that all potentially arising claims are adequately protected. The nature of this policy underscores the need for professionals to ensure they have appropriate and ongoing coverage to manage liabilities effectively.