Frequently Asked Questions regarding Claims-Made and Retroactive Date
What is the difference between a claims-made policy and an occurrence policy?
What triggers coverage on a claims-made policy?
What is a retroactive date?
Why is a retroactive date important to maintain?
Examples of Covered and Not Covered Timelines
What is the difference between a claims-made policy and an occurrence policy?
- Coverage is activated when the claim is made (claims-made policy) instead of when a wrongful act occurs (occurrence policy).
What triggers coverage on a claims-made policy?
- Claim must be made during the policy period.
- Claim must be reported during the policy period.
- Most policies allow a 30 to 60 day period after policy expiration in which you can still report claims made during the policy period – check your policy for specific provisions.
- The wrongful act must occur on or after the policy retroactive date.
What is a retroactive date?
- Date from which you can show continuous proof of E&O coverage
- There may be NO gaps in coverage – not even 1 day.
Why is a retroactive date important to maintain?
- In order for a claim to be covered, it must occur on or after the retroactive date. Example 1 below
- Any claim made prior to the retroactive date, will NOT be covered. Example 2 below
Examples of Covered and Not Covered Timelines
- Example 1: Claim COVERED
- Example 2: Claim NOT COVERED
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