Insurance Expert Witness Defines Risk Management Terms Part 2

Insurance expert witness Jim Leatzow has been educating and insuring professionals about the risks to their businesses for twenty years. At, he offers a glossary of jargon associated with risk management. Two of the terms defined are:

Claims-Made Insurance A policy written to cover claims “made” or brought during the present policy in effect, regardless as to when the “event” occurred, but subject to several terms including the “coverage period”. The coverage period begins with a Retroactive Coverage Date and continues to the latest Effective Date. If work was performed under a prior policy and those dates have been accepted by the replacement policy through the Retro Date, then the successor policy accepts the former work risk and exposure. Claims brought outside of that time period are generally excluded and denied. Prior policies that have been replaced will also deny coverage as coverage only applies to the policy in force at the time the “claim is made”.

Grace Period Extra time given to renew a life or health insurance policy. Grace periods DO NOT APPLY to property and casualty insurance.