No Coverage For Claim Made During Policy Period But Reported After Policy Period

The U.S. District Court for the Southern District of Illinois, applying Illinois law, has held that there is no coverage under a claims-made policy for a claim made during the policy period but reported after the policy period expired. Berkley Ins. Co. v. Caraway, 2025 WL 3280220 (S.D. Ill. Nov. 25, 2025).

The insured, an attorney, was sued on February 11, 2023 by a trust in connection with his alleged default on a loan, but he did not notify his lawyers' professional liability insurer of the suit until July 20, 2023, after the policy's June 1, 2022 to May 1, 2023 policy period. The insurer denied coverage, and the insured assigned his claim for coverage to the trust. The insurer filed a declaratory judgment action against the trust seeking a declaration that there is no coverage for the underlying suit based on, among other grounds, that the suit was not timely reported during the Policy Period.