Glossary

What is Prior Acts Coverage?

Coverage under a claims-made policy for wrongful acts that occurred before the current policy's inception but after the retroactive date.

Full Definition

Prior acts coverage in a claims-made policy covers claims arising from wrongful acts that occurred before the current policy's inception date but after the policy's retroactive date. When a company switches claims-made carriers, it's essential that the new policy's retroactive date matches the original policy's retroactive date — otherwise, a gap in coverage exists for prior acts. The ideal retroactive date is 'full prior acts' (no retroactive date limitation), meaning the policy covers claims arising from wrongful acts at any point in the past. Some carriers offer prior acts coverage only after the insured has been with them for several years.

Related Terms

Occurrence vs. Claims-Made

Tail Coverage

Retroactive Date

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Related Coverage & Services

Directors & Officers (D&O) Insurance

D&O insurance protects corporate directors and officers from personal liability arising from management decisions.

Professional Liability / Errors & Omissions (E&O)

Professional liability insurance covers claims arising from errors, omissions, or negligence in professional services.

Occurrence vs. Claims-Made

Two fundamentally different policy trigger mechanisms that determine when an insurance policy responds to a claim.

Tail Coverage

An extended reporting period purchased at the end of a claims-made policy that allows claims to be reported after the policy has expired.

Retroactive Date

The earliest date for which a claims-made policy will cover wrongful acts — claims arising from acts before this date are excluded.

Business Insurance

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