Claims-Made Policy refers to coverage triggered by claims first made against the insured during the policy period, regardless of when the underlying wrongful act occurred (provided it post-dates any retroactive date specified in the policy). This contrasts with occurrence-based policies, which respond to losses occurring during the policy period even if claims are made years later. Claims-made policies are the standard form for professional indemnity, management liability, cyber, and directors and officers insurance, reflecting the often-delayed nature of claims in these classes. A critical feature is that coverage ceases when the policy expires or is not renewed unless extended reporting period (ERP) coverage is purchased. However, Section 40(3) of the Insurance Contracts Act 1984 (Cth) allows insureds to preserve coverage by notifying the insurer during the policy period of circumstances that might give rise to a future claim, effectively converting potential future claims into deemed claims under the current policy.

Claims-Made Policy refers to coverage triggered by claims first made against the insured during the policy period, regardless of when the underlying wrongful act occurred (provided it post-dates any retroactive date specified in the policy). This contrasts with occurrence-based policies, which respond to losses occurring during the policy period even if claims are made years later. Claims-made policies are the standard form for professional indemnity, management liability, cyber, and directors and officers insurance, reflecting the often-delayed nature of claims in these classes. A critical feature is that coverage ceases when the policy expires or is not renewed unless extended reporting period (ERP) coverage is purchased. However, Section 40(3) of the Insurance Contracts Act 1984 (Cth) allows insureds to preserve coverage by notifying the insurer during the policy period of circumstances that might give rise to a future claim, effectively converting potential future claims into deemed claims under the current policy.