Important New York disclosure for claims-made policies


Professional Liability – Errors and Omissions insurance policy.

The following notice is being provided in accordance with New York Law:

This policy contains coverage that is written on a claims-made basis.

With respect to such coverage, this policy does not apply to claims arising out of incidents, occurrences or alleged wrongful acts which took place prior to the applicable retroactive date (if any).
Such claims-made coverage applies only to those claims actually made against the insured while the policy remains in effect.

All coverage provided on a claims-made basis under this policy ceases upon termination of the policy, except coverage for claims reported during the automatic extended reporting period or during one of the optional extended reporting periods, if purchased.

The nature of claims-made coverage is such that during the first several years of continuing claims-made coverage, claims-made premiums are comparatively lower than occurrence coverage premium. An insured can expect substantial annual premium increases, independent of overall rate level increases, until the claims-made relationship reaches maturity.

The following extended reporting periods are available upon termination of coverage:

  • 60 Day Automatic Extended Reporting Period
  • 1 Year Optional Extended Reporting Period
  • 2 Year Optional Extended Reporting Period
  • 3 Year Optional Extended Reporting Period

 

Potential coverage gaps may arise upon expiration of the extended reporting periods.