All D&O policies reviewed for FC&S D&O provide claims-made coverage. The obligation of an insurer to pay for a claim and related expenses under a claims-made policy is triggered only if a covered claim is first made against the insured during the policy period or extended reporting period. Claims-made policies contrast with the more common occurrence-basis general liability and umbrella policies, which are triggered by the date the loss or injury occurs, even though the claim may not be made until months or years after the policy expires. A graphic example of the key difference between these two types of policies is shown in the following chart.

 Differences between Claims-Made Policy and Occurrence Policy