What is the main purpose of a claims-made form in insurance?

The main purpose of a claims-made form in insurance is to provide coverage for claims that are reported during the policy period, regardless of when the incident that caused the claim occurred. This means that as long as the claim is made while the policy is active, it will be covered, even if the event happened prior to the policy's inception. This structure helps both the insurer and the insured by creating clear boundaries around when coverage is available, ensuring that claims are processed efficiently during the policy period.

Claims-made forms are commonly utilized in professional liability insurance, where it is important for coverage to be linked to the time the claim is reported rather than the time the injury or damage occurred. This contrasts with occurrence forms, which cover incidents that happen during the policy period, irrespective of when claims are filed.

The other options do not accurately reflect the essence of what a claims-made form is designed to do. It does not primarily cover claims from past incidents or provide protection against future occurrences in the same manner as occurrence policies. Additionally, the claims-made form is not intended to reduce premiums for specific claims, but rather to clearly outline the terms and conditions under which coverage is provided.