Which type of coverage pays for losses incurred during the policy period found for up to one year after policy termination?

Claims-made coverage is designed to respond to claims based on when the claim is made rather than when the incident causing the claim occurred. This type of coverage is especially common in professional liability insurance and similar policies. A key feature of claims-made coverage is that it provides protection for claims that are reported during the policy period or within a specified time frame after the policy has ended—typically up to one year following termination.

This characteristic allows the insured to have peace of mind knowing that even if a claim arises after their policy has concluded (as long as it is reported within the designated time frame), they will still have coverage for that claim. This contrasts with occurrence coverage, which protects against claims made for events that occurred during the policy period, regardless of when they are reported. Hence, claims-made coverage is the most apt choice when discussing policies that cover claims reported after the termination of coverage, within the specified time limits.