What are “Claims-Made” policies? How this policy is different from conventional/no... insurance policy?

Answers:
Claims-made insurance policy:
An insurance policy that provides coverage for claims arising from incidents that both occur and are reported to the insurance company while the policy is surrounded by force. A claims-made policy is in force from the starting date of the initial policy term (the retroactive date) and continues in force from that date through respectively subsequent renewal. When a claim-made policy is terminated, future claims arising from incidents that occur during the policy period are not covered. However, the policyholder typically has the right to purchase an extended reporting help.
**This would be most useful for a business selling a product or service which have the possibility of future liability.

---

---