The Chanin Building, 122 East 42nd Street, Suite 725, New York, New York 10168

Blog Post

Do You Have Claims-Made Professional Liability Coverage? Know Your Reporting Requirements

Do You Have Claims-Made Professional Liability Coverage? Know Your Reporting Requirements by Evan Schwartz

Professional Liability Insurance (PLI) is generally sold as claims-made coverage—a unique type of time-limited coverage primarily for professionals.

Typical examples of PLI coverage include: 

•Legal malpractice for attorneys;

•Medical malpractice for physicians;

•Employer Practices Liability Insurance (EPLI);

•Directors and officers (of corporations) liability insurance;

•Media liability insurance;

•Brokers’ errors and omissions insurance; and

•Cyber-liability, technology errors, and omissions insurance coverage (this product is new).

Claims-Made Coverage

Insurance companies can price claims-made policies more competitively because there is a defined time period that they are on the risk (responsibility to cover a claim). Professionals need to know when to report those claims to the insurance company.  

The general rule is that claims against the professional (the insured) must be made during the policy period to be covered, which is typically a one-year period.

Depending on the language of the policy, if the claim was not made against the professional during the policy period, the claim will not be covered.

In addition, the claim typically must be reported to the insurance company by the person or company that is the contracting party or holds the policy — the insured. This rule protects the insured from claims that they are not required to report as professionals. Moreover, it limits the scope and cost of the policy by reducing the time that the insurance company would need to investigate claims reported by non-policy holders.

For example, if a lawyer who has claims-made insurance makes an error and his client files a claim for that error, the insurance company will question when the client made the claim (as opposed to when the incident occurred). If the client made the claim against the lawyer, but the lawyer or law firm failed to alert the insurance company, they are at serious risk of not having coverage.

Next, if a claim is made during the period when the policy is in force, the insured professional must read the policy to know whether the claim must also be reported to the insurance company during the policy period. Such an insurance policy is known as a claims made and reported policy, as opposed to just a claims made policy.

In a future blog, I will discuss how the word “Claim” is defined in these policies and how the courts further define it.

Professionals who hold claims-made coverage must be aware of their reporting obligations as specified in the policy. Please contact us with any questions or comments.



Evan S. Schwartz
Founder of Schwartz Law


Click Here to Subscribe to Our Newsletter!

what our clients say about us


  • During the most trying part of my life, Schwartz Law’s attorneys were fighting for my life. I was physically just barely up on my own two feet, with a diagnosis

    Long Term Care Client – New York
  • A company made an error in how they sold me my long-term disability insurance policy and they offered me a lump sum settlement. I did not fully understand the offer

    Physician–New York
  • My claim was denied by my insurance company. My medical condition wasn’t understood by my physicians. My first attorney gave me terrible advice. My family faced financial ruin without the

    Physician – New York
  • After practicing law for many years, it became clear that the multitude of my illnesses were preventing me from being effective as a lawyer. I had no experience with long-term

    Lawyer — New York
  • As former president and chief executive officer of a large, publicly traded company, I understand the need to hire good attorneys. When an illness prevented me from continuing to work

    CEO — tri-state region

Latest News

Send us a message

Manhattan Offices

The Chanin Building, 122 East 42nd Street, Suite 725, New York, New York 10168

Toll Free: (800) 745-1755
Phone: (212) 608-5445

Garden City Office

666 Old Country Road, Ninth Floor, Garden City, New York 11530

Toll Free: (800) 745-1755
Phone: (516) 745-1122
Fax: (516) 745-0844