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While it is usually up to the policyholder to choose policy coverage options, such as types of cover and limits of indemnity, we have recently seen a trend in the number of local authorities contractually requiring minimum standards of insurance.
This initially started out as setting limits of indemnity, but more recently has expanded to setting the basis of cover. Some local authorities have specified a requirement for ‘claims occurring’ cover for those organisations involved in the care and support of vulnerable or disadvantaged people.
Abuse claims have, unfortunately, been a regular topic of news over the last few years and, as we know from high profile cases, abuse claims often come years after the event has happened. This has highlighted the need for organisations to have a claims occurring policy over a ‘claims made’ policy. A brief overview of the differences between covers is as follows:
Claims made policy
Many policies are issues on a claims made basis, meaning the policyholder is only covered for incidents that happen are and are notified during the period of insurance. Any claims notified after the period of insurance ends, for example if the policyholder changes insurer may not be covered.
Claims occurring policy
A claims occurring policy would cover an organisation in the event of a claim irrespective of when the claim is made, giving the policyholder long-term protection.
As a specialist insurer, we understand the risks organisations in the care and charity sector face and our social welfare and charities and community groups products offer cover on a claims occurring basis to provide peace of mind and protection for policyholders.