P&CTexasmedium
A contractor purchases a claims-made CGL policy effective January 1, 2025, with a retroactive date of January 1, 2023. In March 2025, a claimant alleges bodily injury from work performed in June 2022. Will the policy respond?
No — the occurrence predates the retroactive date, so coverage is excluded
BYes — the claim is made during the policy period, and the occurrence is after the retroactive date
CYes — claims-made policies cover all prior acts regardless of retroactive date
DNo — claims-made policies only cover occurrences within the same calendar year as the policy
Why this is the answer
Claims-made coverage requires two conditions: (1) the claim must be first made during the policy period, and (2) the occurrence must take place on or after the retroactive date. Here, the claim is made in March 2025 (during the 2025 policy period — condition 1 met). However, the work was performed in June 2022, which is before the January 1, 2023 retroactive date — condition 2 fails. No coverage is triggered. This distinguishes claims-made from occurrence forms, which ask only when the injury happened relative to the policy period.
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