What is the primary focus of a "claims-made" policy?

A "claims-made" policy primarily focuses on covering claims that are made during the policy period, regardless of when the incident that led to the claim occurred. This means that the coverage is activated when a claim is reported to the insurer, as long as the incident happened after the policy's retroactive date and while the policy is in force.

This is particularly significant in professional liability and similar insurance scenarios, where delays in reporting claims can be common. A claims-made policy provides a clear timeframe for coverage, offering protection as long as the insured is within the policy period at the time the claim is reported. This aspect helps both insurers and policyholders manage risk and ensure that claims are addressed efficiently.

In contrast to this, other options do not accurately reflect the nature of a claims-made policy. For example, claiming that the policy covers all incidents regardless of when the claim is made does not emphasize the critical element of the claims-made structure which ties coverage directly to the reporting of the claim within the policy period. Similarly, denying claims that exceed a certain timeframe or providing complete coverage for unreported incidents does not align with how claims-made policies operate, which focus on claims reporting rather than incident occurrence or unreported claims.