Claims-made policy
A claims-made policy only covers claims lodged while the policy is active, not when the work was done. Lapsing PI after project completion leaves you exposed.
Ask Chalkline about this →A claims-made policy is one where coverage applies only when the claim is first lodged against you during the active policy period, regardless of when the underlying event or professional error occurred. This is the standard trigger for professional indemnity (PI) insurance in Australia, and is the opposite of an occurrence policy (standard for public liability), where coverage applies based on when the event happened.
The practical consequence for builders: if you cancel or let a PI policy lapse after finishing a project, any design defect claim that surfaces later will have no cover, even if the work was done while the policy was active. Continuous PI coverage (or a run-off extension on cancellation) is essential.
Also known as: Claims-made basis.
Category: Insurance
See also: Run-off cover, Retroactive date.
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Last updated: 2026-05-08. Verified: 2026-05-08. Quarterly review for currency.