A retroactive date is an essential component of a claims made policy, and has significant implications for the scope of its protection. The prior acts coverage of a policy provides an organisation and its management with many benefits, but failing to understand how and when it can be restricted can leave those relying on coverage unexpectedly exposed.
In this article, we will explore the concept of a retroactive date 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 Retroactive date: A definition
2 How is it related to prior acts coverage?
3 Why a retroactive date is unique to a claims made policy
4 Pending and prior litigation date: Similar but different
5 When is a retroactive date applied?
6 Retroactive date vs continuity date: What is the difference?
7 Retroactive date: An example
8 Conclusion
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