What is the reporting requirement for medical payment expenses under a commercial general liability policy?

In the context of a commercial general liability (CGL) policy, medical payment expenses must be reported within one year of the accident. This requirement ensures that all parties involved in a claim stay informed and that the insurer can properly manage and assess the claim within a reasonable timeframe.

The rationale behind the one-year reporting period is to strike a balance between allowing insured parties sufficient time to gather and present necessary documentation for their medical expenses while also ensuring that insurers can evaluate claims without extremely long delays. This timeframe is designed to facilitate prompt claims handling and to allow insurers to reserve appropriately for any potential liabilities. Adhering to this requirement helps to maintain clarity in the claims process and ensures that records reflect timely actions taken by both the insured and the insurer.