Nose Coverage
Nose coverage, more formally called prior acts coverage, extends a new claims-made policy to cover incidents that happened before the policy started but haven't been reported yet. The Allen Thomas Group uses nose coverage to protect businesses switching insurers so a gap in claims-made timing doesn't leave old, unreported exposure uninsured.
Why Nose Coverage Exists
Claims-made policies (common in professional liability and D&O coverage) only respond to claims reported while the policy is active, and typically only for acts that occurred on or after the policy's retroactive date. When a business switches insurers, the new policy would normally set its retroactive date to the switch date, leaving prior work uncovered unless nose coverage backdates that retroactive date to match, or precede, the old policy's.
Nose Coverage vs. Tail Coverage
| Coverage | Direction | Purpose |
|---|---|---|
| Nose coverage | Backward-looking | Covers past acts under a new policy |
| Tail coverage | Forward-looking | Extends reporting time after a policy ends |
Why This Matters When Switching Carriers
A consulting firm that switches E&O insurers without securing nose coverage could find that a claim over work performed under the old policy isn't covered by either insurer: the old policy because the claim wasn't reported while it was active, and the new policy because its retroactive date starts too late. This gap is easy to overlook during a routine renewal and can leave months or years of past work completely uninsured.
How The Allen Thomas Group Can Help You
We'll help you understand exactly how nose coverage affects your coverage and cost, then shop your policy across 15+ A-rated carriers to find the right fit.
Get a Precise Quote