Claims Made Basis Liability Coverage

Definition of "Claims made basis liability coverage"

Patrick Bell &  Karen Nash
  Better Homes and Gardens Real Estate Metro Brokers

Method of determining whether or not coverage is available for a specific claim. If a claim is made during the time period when a liability policy is in effect, an insurance company is responsible for its payment, up to the limits of the policy, regardless of when the event causing the claim occurred. Experts often advise that it is extremely important, when purchasing a property and casualty policy, to determine if claims are paid on a claims made basis or a claims occurrence basis.

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