What is a claims made policy?
The NASW RRG, Inc. offers a claims made policy contract as a professional liability insurance coverage solution to social work professionals. A claims made policy is a type of liability insurance form that is a low cost option, starting out in year one. This policy experiences incremental increases during the first six years as concurrent renewal coverage terms occur. Each year, the number of clients you serve increases and your insurance risk adds up each year to match, as reflected in your premium change.
If you maintain the professional liability policy with concurrent renewal terms, given the small increase each year, you maintain what is referred to on the claims made policy as a retroactive date.
The retroactive date is important as it is the effective date of your first insurance policy term with the NASW RRG and where coverage support begins for your first and future renewed policy coverage terms. When you renew following coverage terms, your retroactive date is carried from year to year and accounts for the many years of client contact transacted over time.
Keeping in mind that most claims are reported after an insurance policy term is over, the basis of coverage is focused on the date(s) of professional care provided to your client associated with any reported incidents. When a claims team reviews an incident report, one of the elements related to the confirmation of coverage is based on the dates of client contact. The policy will act to support incidents of client care that took place after the retroactive date provided the policy is still in force, renewed in a subsequent term(s) or endorsed (Extended Reporting Period Endorsement-ERP) at expiration or cancellation.
Why is it important to contact the insurance company if you do not want to carry the claims made policy any longer?
When considering final cancellation or expiration options on a claims made policy, it is important to contact the NASW RRG to share your intent to leave the claims made policy permanently. This is a critical step because you cannot gain coverage on any professional liability claims or incident reports unless you request to endorse the policy within 60 days after your cancellation or expiration date. Depending on your circumstance, there are some options to consider on the endorsement and it is important to contact our licensed insurance representative.