What kind of coverage is typically extended under a claims-made liability policy?

A claims-made liability policy is designed to provide coverage for claims that are made during the policy period, but only if the event leading to the claim occurred after a specified retroactive date. This means that the insurer will only cover claims that are reported while the policy is active and that arise from incidents during the effective coverage period. The correct answer reflects this characteristic of claims-made policies, as they protect against future claims that may arise following incidents that occurred when the policy was in effect.

While the other options detail scenarios that do not align with the principles of claims-made policies, the ability of claims-made policies to offer coverage for future claims made after the policy period but related to events occurring during the coverage window is a distinctive feature. This ensures that insured parties maintain protection as long as they remain compliant with the policy conditions, effectively providing a safety net for claims that may emerge later.