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by sidewndr46
1812 days ago
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But this isn't how other insurance policies work, at least in the US. Let's say I destroy someone's property today using my truck. Something simple, like I drive across their front yard and break their water line. I leave the scene and just go home. 6 months later, an investigation is conducted and they find surveillance footage of me driving in and out of the neighborhood and come to the conclusion that I broke the water line. A claim is made against my insurance. At that point, it doesn't matter if the policy is still active or even if I'm dead. The liability insurance I have will cover the cost of the damages provided someone gathers enough evidence and presents it. |
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How an insurance policy works depends on the terms of the policy. No more, no less.
> An occurrence policy will cover claims related to activities or events that occurred while your policy was in effect. Even if your policy expired or you canceled it, the claim would be covered if the event happened during the policy period. […]
> When you buy a claims-made policy, you will be covered if both the event and the claim arise while the policy is active and are reported during that time period. If you do not add the expired term to the subsequent policy period, you will lose coverage for any previously unknown claim that took place during the prior policy cycle. […]
* https://www.embroker.com/blog/claims-made-vs-occurrence-insu...
> An extended reporting period (ERP) is a feature you can add to your claims-made professional liability insurance policy. It allows you to report claims even after your policy expires. This policy endorsement is also known as tail coverage.
* https://www.insureon.com/insurance-glossary/extended-reporti...
> The liability insurance I have will cover the cost of the damages provided someone gathers enough evidence and presents it.
Does it? Have you read the terms of your policy? Or are you just assuming it does? Even if you're right, it could be that, since vehicle insurance is mandated in most jurisdictions for public roads, certain clauses are also mandated as well. Whereas other types of insurance, which are not government-mandated, it is the responsibility of the purchaser to actually get check the contract they're signing.