Which type of insurance covers claims only if they occur while the policy is in force?

Claims-made insurance specifically covers claims that are made during the policy period, provided that the incident leading to the claim occurred after the retroactive date and while the policy is active. This means that if a policyholder is insured under a claims-made policy when a claim is reported, the insurance company will respond to that claim as long as the claim relates to incidents that occurred during the policy's active term.

In contrast, occurrence-based coverage addresses incidents that occur during the policy period, regardless of when the claim is actually filed. Liability insurance is a broader category that encompasses various forms of coverage, while general liability coverage specifically pertains to third-party bodily injury, property damage, and related risks. Claims-made policies are distinctly recognized for their exigent requirement that both the claim be made and the incident relate to the coverage active at that specific time. Therefore, the correct understanding of this type of policy highlights the defined limits concerning when claims can be made versus when incidents happened, setting it apart from the other types of insurance mentioned.