PcM Video "Insurance Basics"

Can someone explain why in the “Insurance Basic” video, a Claims-made policy is stated that you do not have to have coverage during the time of the incident. This is contradicting the fact that claims’ made policies can not have lapses in coverage. In addition I got a test question wrong regarding this issue. The explanation stated that you have to have the claims-made coverage during and after the incident. I’m sure I’m not hearing something correctly. Even the chart reads as though you do NOT need coverage during the time of the incident for a claims-made policy. Can someone clarify this for me please

Hey Bianca - claims-made and occurrence-based types of policies apply to all kinds of insurance, not just professional liability. I just wanted to start there, because thinking about these categories of insurance coverage separate from what you know about PL Insurance is helpful.

At 5:17 in our Insurance Basics video, we state that “a claims-made policy must be kept current to maintain coverage”. PL insurance tends to be claims made, without retroactive coverage. That means that they won’t cover acts that happened before the policy was in place - if you want that kind of coverage, you need prior acts insurance as well (which we cover later in the series).
I hope that was helpful and thanks for being part of the community!