Discovery Clause

A provision in a claims-made policy that allows coverage for claims first discovered during the policy period, even if the claim is not formally reported until after the policy expires, provided the insured notifies the carrier within a specified timeframe. Discovery clauses are particularly relevant to law firm malpractice policies because errors may surface gradually—through audit findings, client complaints, or opposing counsel correspondence—before a formal demand is made. The clause gives firms a defined window, often 30 to 60 days after policy expiration, to report newly discovered potential claims. This differs from an extended reporting period in that it addresses late discovery rather than late reporting of known claims.