What’s Covered Under My Prior Acts Policy?


Professionals in the healthcare and legal industries benefit the most from prior acts coverage. The insurance policy covers claims that take place prior to the start date of a new liability policy.

This is particularly advantageous for professionals who are switching insurance carriers and might go through a short period between the transition where they are not covered.
The experts at Huntersure remind us that another reason prior acts coverage is so important is because of the time it takes for some issues to work their way through legal channels. For this reason, a healthcare organization might file a liability claim a year or two after a patient brought a suit against it. And during that time, the organization or physicians involved in the issue may have switched carriers. With prior acts coverage, they may be financially protected against that liability.

Once a policy is purchased, a retroactive date is set for some time before the first date of coverage. Then, any claims filed for events that took place prior to the first date of coverage and after the retroactive date will be protected by the policy.

It can take a little work, but if professionals search hard enough, they may find some carriers who will provide prior acts coverage without a retroactive date. In other words, they will cover a claim regardless of when it is filed. Those insurers can be difficult to find, but they are out there.

This post was written by , posted on September 4, 2019 Wednesday at 2:16 pm