is implicated. The insurance industry reacted in two ways to these developments. First, premiums on new occurrence policies skyrocketed, since the industry had come to a better appreciation of the true risks associated with such policy language. Second, the industry began issuing claims-made policies, in which the policy covers only those claims that are first "made" against the insured during the policy period. A related variation is the claims-made-and-reported policy, in which the policy covers only those claims that are first made against the insured and reported by the insured to the insurer during the policy period (which often include a grace period for reporting after the end of the policy period to protect insureds who are sued at the very end of the policy term). Claims-made policies enable insurers to again sharply limit their own long-term liability on each policy and in turn, to close their books on policies and record a profit. Hence, such policies are much more affordable than occurrence policies and are very popular for that reason. Of course, claims-made policies shift the burden to insureds to immediately report new claims to insurers. They also force insureds to become more proactive about risk management and finding ways to control their own long-tail liability. Claims-made policies often include strict clauses that require insureds to report even potential claims and that combine an entire series of related acts into a single claim. This puts insureds in a position of trading off timely reporting of every "potential" claim (i.e., every slip-and-fall on their premises), even if those never ripen into actual lawsuits, and thereby protect their right to coverage, at the expense of making themselves look more risky and driving up their own insurance premiums. Or they can wait until they actually get sued, but then they run the risk that the claim will be denied because it should have been reported back when the underlying accident first occurred. Claims-made coverage also makes it harder for insureds to switch insurers, as well as to wind up and shut down their operations. It is possible to purchase "tail coverage" for such situations, but only at premiums much higher than for conventional claims-made policies, since the insurer is being asked to re-assume the kind of liabilities which claims-made policies were intended to push to insureds to begin with. Not surprisingly, insureds recognized what the insurance industry was up to in trying