What is the primary focus of coverage in a claims-made policy?

In a claims-made policy, the primary focus is on the claims that are made during a specified time frame, rather than when the event that gave rise to the claim occurred. This means that the policy is designed to cover claims that are reported to the insurer while the policy is active, provided that the incident that led to the claim happened after the policy's retroactive date. This characteristic makes claims-made policies particularly pertinent for professions where legal liabilities may arise from services provided in the past but are reported later.

The distinction lies in the fact that a claims-made policy is not tied to the occurrence of the damage or incident itself; instead, it is contingent upon the reporting of a claim within the designated policy period. This provides both the insurer and insured a clear timeline for potential payouts, offering a structured approach to managing risk in fields like professional liability.

Other options present concepts that are not characteristic of claims-made policies. For instance, the coverage tied to when damages occur or focuses on property damage only does not align with the unique nature of claims-made policies, which can cover a range of liabilities; it's the claims made that are key, not merely the occurrence of any related incidents.