What is required for insurance coverage under a claims-made form in a contractor agreement?

In a claims-made form of insurance coverage, it is essential for the contractor to maintain the insurance not only during the period of the contract but also for a specified duration after the contract has ended. This ensures that any claims arising from services provided during the contract period can still be covered even after the agreement is terminated, as long as they are reported within the coverage period.

Specifically, many agreements requiring claims-made coverage stipulate that the contractor must maintain the insurance for the entire duration of the agreement and continue the coverage for three additional years post-termination. This longevity of coverage helps address the risk of claims that might be made well after the contractor has completed their work, safeguarding both the contractor and the other parties involved from potential litigation that could arise due to issues not immediately reported. By requiring continuous coverage extending beyond the contract period, it provides a reassurance that any unexpected claims can be adequately managed.

This comprehensive approach to insurance is critical in protecting all parties involved and ensuring that the contractor is held accountable for their work even when claims are reported well after services were rendered.