Legal Definitions - continuous policy

A continuous policy is a type of insurance policy that remains in effect until one of the parties terminates it according to its terms. It is also known as a perpetual policy. This means that the policy does not have an expiration date and will continue to provide coverage as long as the premiums are paid.

Examples of continuous policies include:

• Perpetual life insurance policies that provide coverage for the entire life of the insured.
• Claims-made policies that provide coverage for claims made during a specified period, regardless of when the incidents that gave rise to the claims occurred.
• Commercial general liability policies that cover most commercial risks, liabilities, and causes of loss.

These examples illustrate how a continuous policy provides ongoing coverage for a specific period or for the entire life of the insured. As long as the premiums are paid, the policy remains in effect and provides protection against covered risks.