When is a claims made form of CGL triggered?

The claims-made form of Commercial General Liability (CGL) insurance is triggered specifically when a claim is filed, provided that the policy is in effect at that moment and the incident that led to the claim occurred after the policy's retroactive date. This means that for coverage to apply, the insured must have a valid CGL policy in force when the claim is made, even if the event itself occurred earlier.

This structure is designed to protect insurers from unexpected claims that arise long after an event has happened, which is a notable characteristic of claims-made policies as compared to occurrence policies. With occurrence policies, coverage is triggered by the event itself happening during the policy period, regardless of when the claim is made.

Understanding the nuances of claims-made policies is essential for suitably managing insurance coverage and ensuring that appropriate protection is in place for potential claims.