What is a Retroactive Date?
The retroactive date is the earliest date on which a medical incident or occurrence may occur and for which coverage may be afforded under a claims-made policy. The retroactive date is shown on the policy’s declarations page or applicable endorsement. The retroactive date will be the same as the effective date of the policyholder’s coverage if Prior Acts Coverage is not purchased. However, if Prior Acts Coverage is purchased, the retroactive date will be before the effective date of the policyholder’s coverage.
A retroactive date sets the date after which losses may occur and be covered under a claims-made policy. Acts occurring prior to the retroactive date are excluded from coverage under the policy. E&O policies typically have a retroactive date at the inception of coverage. However, subject to underwriting review, for an additional premium, the retroactive date may be backdated. This is called prior acts coverage.
Some Insurers will select a retroactive date on their policy. The retroactive date reflects the earliest date for which an Insurer will provide coverage. Any claims made for activities conducted prior to the retroactive date would not be covered. This is the opposite of full Prior Acts. If applicable, it is important to know what the retroactive date on your policy.
Some Insurers will impose a retroactive date on the policy. The retroactive date reflects the earliest date for which an Insurer will provide coverage. Any claims made for activities conducted prior to this date would not be covered. This is the opposite of Prior Acts coverage. CGA’s Professional Liability/E&O Insurance Program does not have a retroactive date.
A retroactive date sets the date after which losses may occur and be covered under a claims-made policy. Acts occurring prior to the retroactive date are excluded from coverage under the policy. E&O policies typically have a retroactive date at the inception of coverage. However, subject to underwriting review, for an additional premium, the retroactive date may be backdated.
Related Questions
- Will an agency be required to submit retroactive certified payroll records if they started ARRA funded work prior to receiving the DOL wage determinations?
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