- The policy is issued on a losses-discovered basis which in some ways is similar to claims-made basis.
- The Contractual Penalties cover is issued on a claims-made basis.
- Some people may mistakenly think that the rest of the policy is also issued on a claims-made basis, but this is not the case because ‘claims-made’ refers to the time when a third party makes a claim against the Insured.
- Since most of this policy covers ‘own damage’ and not ‘third party liability’, ‘claims-made’ is not an appropriate term.
- It may be more appropriate to describe the policy as being issued on a ‘losses-discovered’ basis.