Two ways of triggering a liability cover, depending on whether one retains the date of the harmful event or the date of the victim's claim.
The triggering basis determines which contract responds when a liability loss surfaces, a decisive question when years separate the triggering event from its consequences. On an occurrence basis, the cover that responds is the one in force at the moment the event giving rise to the damage occurs, regardless of when the victim claims. On a claims-made basis, by contrast, the cover that responds is the one in force when the claim is made, provided the triggering event is not earlier than a retroactive date defined in the contract. The claims-made basis involves two essential mechanisms, the retroactive date, which sets the maximum age of the events covered, and the extended reporting period, which prolongs cover for claims made after the contract ends. Most professional liability covers and cyber policies operate on a claims-made basis, which makes it a major point of vigilance, since a poorly managed change of insurer can create a gap in cover for old events claimed belatedly.
A company changes its liability insurer. A customer complains of a defect that occurred two years earlier. If the new claims-made policy has a retroactive date later than the event, and if the old one offers no extended reporting period, the loss is covered by neither.
claims-made, occurrence, base réclamation, base fait dommageable, trigger de garantie