What does Continuous Cover mean in my professional indemnity policy?
Professional Indemnity policies are written on a Claims Made policy which generally excludes claims arising from circumstances known to the insured before the start of the policy period. If, when the notification is investigated and its shown that your client did not disclose their knowledge of any potential claim this could lead to denial of the claim.
Therefore, the Continuous Cover clause is there to extend cover under the policy to a claim arising out of a circumstance which could have been notified under a previous Professional Indemnity insurance policy but the insured (for whatever reason) did not.
However, for a Continuous Cover clause to apply, the insured must have been insured under a Professional Indemnity insurance policy at the time they first became aware of the circumstance that eventually gives rise to the claim.
The insured must have been continuously insured, without any gaps in policy periods, by a Professional Indemnity insurance policy.
Source: Solution Underwriting