Prior acts coverage is an interesting and unique feature of a claims made policy. It provides a number of benefits to an organisation and its management, but can cause almost as many issues if not implemented correctly. For this reason, it is essential to be aware of the various factors that influence how a policy’s coverage will respond to a prior act of an insured.
In this article, we will explore the concept of prior acts coverage within the context of the following coverages:
- Directors and officers liability insurance
- Employment practices liability insurance
- Management liability insurance
- D&O insurance for nonprofits
You may also find that similar concepts apply to a broad range of financial lines insurances, such as professional indemnity insurance, cyber insurance, and even crime insurance to a certain extent. Keep in mind, however, that each policy is strictly interpreted according to its own terms and conditions.
Contents
1 Prior acts coverage: A definition
2 Its relationship to a claims made policy
3 Why any circumstance should also be notified
4 Excluding prior acts with a retroactive date
5 Continuity and a pending and prior litigation date
6 The purpose of prior acts coverage
7 Prior acts coverage: An example
8 Conclusion
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