How long keep old insurance policies

Like occurrence-based policies, property policies cover any claim that involves a loss that occurred during the term of the policy. However, unlike occurrence-based policy claims, property losses are usually discovered shortly after they occur, limiting how long policy records need to be kept.

For such policies, a. The tail only covers a claim if it is the result of a loss that occurred during the time when the policy was initially active.

Because there is a limited chance that they will come into play in the long term, six years after the tail expires is an adequate retention period for claims-made policies. There are many cases where employees are exposed to health hazards that take years to fully develop into a serious condition. This occurs frequently with mining companies whose operations exposed employees to hazardous coal dust before its relation to the development of Black Lung Disease was known.

These companies are still responsible for the exposure no matter how long ago it happened. In these cases, the policy that was in effect at the time can also be triggered to cover the claim. For these reasons, it is important to keep records of workers compensation policies indefinitely. The regulation requires records to be kept for at least six years after their filing date. Mary Van Keuren has written for insurance domains such as Bankrate. She …. Edited By Amy Sims.

Edited by. Amy Sims. Amy Sims is a senior editor for Bankrate, leading a team responsible for creating educational insurance content. Reviewed By Mark Friedlander. Reviewed by. Mark Friedlander. Director of corporate communications, Insurance Information Institute. Mark Friedlander is director of corporate communications at III, a nonprofit organization focused on providing consumers with a better understanding of insurance.

Share this page. Bankrate Logo Why you can trust Bankrate. We guide you throughout your search and help you understand your coverage options. We provide up-to-date, reliable market information to help you make confident decisions. We reduce industry jargon so you get the clearest form of information possible. Bankrate Logo Editorial Integrity.

Key Principles We value your trust. Bankrate Logo Insurance Disclosure. Documents that you need to keep Knowing how long to keep auto insurance statements and how long to keep insurance policies requires you to determine why you might need them in the future.

There are a number of documents that you will receive as part of your auto insurance coverage that should be saved: Your auto insurance card. This small card easily fits into a wallet or glove compartment and should be kept with you when operating your vehicle. You may also have access to a digital insurance card through your auto insurer, although a paper copy is beneficial as a backup if you forget your cell phone.

In some states, you are required by law to have the card in your vehicle. If you are pulled over by law enforcement, they will request proof of insurance. You will also need your auto insurance card if you have an accident since it contains your policy number and other pertinent information you will need to exchange with the other driver.

The declarations page of your auto insurance policy. You will receive this page along with your other policy documents when purchasing new insurance coverage or renewing your policy.

Keep this document in a safe place until you receive a new one when you renew your policy. Documents pertaining to a claim. If you have an open claim with your auto insurer, keep all receipts, repair bills and any other paperwork pertaining to the claim. These documents can be disposed of once you have received a check and the claim is officially closed. Your monthly billing statement. It may be a good idea to keep a file of your billing statements for tax purposes if your insurance is related to a business if you use your car for business purposes, for example, or have a home office.

If you are audited, you may need to show your bills for the last seven years. Your premium. This information is actually not a document — it is on your billing statement — but it is worth keeping track of for the long term.

Staying aware of your rates over the years gives you a clear sense of how often your rates are changing — which might have you thinking about shopping your coverage if your rates are high.

Looking at the average cost you paid in vs. Documents that you do not need to keep Determining how long to keep insurance records also involves knowing what you can throw out, and when. Here are a few items that you do not have to keep indefinitely: Your main policy document.

This is the multi-page document that includes all the details about your policy limits, discounts, coverage, endorsements and more. Many people hold onto these pages until they renew their policy — and that is fine. While most claims covered by occurrence policies have a two-year statute of limitations, the discovery rule and specialized rules for latent claims can effectively extend the statute of limitations indefinitely. The best practice is to keep the policies forever.

If you are confident that you will not have any claims brought against you for latent matters, a good rule of thumb is to keep the policies for six years. Nearly all potential claims will have expired within this timeframe. For claims-made policies like professional liability, errors and omissions, and directors and officers, you may discard them after the term, any extended coverage term, and any tail coverage has expired.

A good rule to follow is: If you have received a replacement policy for your claims-made coverage, you may safely toss the old policy. If you have not received a replacement policy, you should keep the policy for the length of the extended term usually not longer than 1 year , or for the length of the tail coverage.

The longest tail coverage period that I have ever seen is six years. So, if you do not want to worry about figuring out the length of the tail coverage, a good rule of thumb is to keep claims-made policies for six years. After that, they will be of no potential value. If you do not want to take the time to distinguish between occurrence and claims made policies, a good practice to follow is to keep the policies at least six years , as explained above.

If you, a client, or someone you know has an insurance problem, please consider calling a member of our Insurance Recovery Group.