Which type of insurance coverage is primarily concerned with damages during a specified period?

The type of insurance coverage that is primarily concerned with damages during a specified period is referred to as a claims-made policy. This type of policy provides coverage for claims that are made during the policy period, regardless of when the actual incident that caused the claim occurred.

The fundamental characteristic of claims-made policies is that they require the claim to be reported to the insurer within the policy term for coverage to apply. This contrasts with other types of policies, such as occurrence policies, which provide coverage for incidents that happen within the policy term, regardless of when the claim is made.

Understanding this distinction is essential, especially in fields such as professional liability insurance, where claims can arise long after the services were rendered. Claims-made policies are valuable because they allow policyholders to manage risks associated with late reporting of claims effectively, provided they maintain continuous coverage.