laundry listing

Laundry listing is sometimes done because discovery provisions under claims-made policies state that if an "incident" is reported to an insurer (that later gives rise to a claim against an insured), coverage will apply regardless of how far in the future the claim is made. Laundry listing poses certain drawbacks for insureds, including higher premiums in renewal policies based on an underwriter's perception of increased future claim frequency, an insurer's refusal to renew coverage given potential claims, difficulty in replacing a policy with a new insurer, and creation of a discoverable record indicating an insured's concern about its liability associated with a specific incident.