Claims Made Insurance Explained for Freelancers (2026)
Professional indemnity insurance (PI) can feel full of confusing jargon, and one of the trickiest terms is “claims made insurance.”
Understanding this is essential for freelancers, consultants, and small business owners who want to stay fully protected if a client raises a claim about past work.
❓ What Is Claims Made Insurance?
A “claims made” policy only covers a claim if both these are true:
- The insurance was active when the work was done, and
- The insurance is still active when the claim is made.
In simple terms, your PI only protects you while the policy is running. Cancel it, and you could lose protection for past work.
👉 If you want to compare insurance providers, check our new 2026 guide: Compare Insurance Providers for 2026
⚠️ Why This Matters for Freelancers
- Many claims arise months or even years after a project is completed.
- If you cancel your PI policy immediately after finishing a contract, a claim that comes in later will not be covered.
- This is particularly important for industries where problems show up long after delivery — for example:
– Designers and developers whose projects cause unexpected client losses
– Beauty or aesthetics professionals where treatments may result in delayed complaints
In short: PI insurance protects your past work only as long as your policy is active.
🔄 Claims Made vs Claims Occurring
Some other types of insurance, like Public Liability or Employers’ Liability, are “claims occurring” policies.
- Claims Occurring: Covers incidents that happen while the policy is active, regardless of when the claim is made.
-
Claims Made: Covers claims only if the policy is active both at the time of the work and the time of the claim.
This is the main difference and why claims made policies require careful attention.
🛡️ How to Stay Protected
Two key options help cover gaps when using claims made PI:
- Retroactive Cover: Extends your policy to cover work done before the start date of the insurance.
- Run-Off / Tail Cover: Extends your protection after your policy ends, ensuring you’re covered for claims made after you’ve canceled.
If your work may generate delayed claims, these options are essential to consider.
⭐ Recommended Provider
PolicyBee offers PI insurance for freelancers with options for retroactive and run-off cover:
- Flexible, freelancer-focused policies
- Clear explanations of claims made vs claims occurring
- Bundles with Public Liability or Tools Insurance for full coverage
✅ Conclusion
Claims made insurance can seem confusing, but it’s straightforward once you know the rules:
- Your PI only covers work while the policy is active.
- Cancel your policy too soon, and you risk losing protection.
- Retroactive and run-off cover extend protection for past and future claims.
For freelancers who rely on professional advice or deliverables, understanding this is critical to avoid costly gaps in insurance.
Read next:
👉 Public Liability Insurance for Freelancers
👉 Professional Indemnity Insurance for Freelancers
👉 Tools and Equipment Insurance for Freelancers