Prior Acts Coverage
Prior acts coverage is a feature of claims-made liability policies that covers wrongful acts or errors that occurred before the current policy's start date, as long as they happened on or after the retroactive date and no claim had already surfaced when the new policy began. The Allen Thomas Group checks for prior acts coverage anytime a client switches carriers on a claims-made policy, since losing it can create a coverage gap for work already performed.
How Prior Acts Coverage Works in Practice
Say a consulting firm gave advice in 2023 under Carrier A, then switched to Carrier B in 2025. If a client sues in 2026 over that 2023 advice, Carrier B's policy only responds if it includes prior acts coverage back to a retroactive date on or before 2023. Without it, the firm could switch carriers and unknowingly leave every year of past work uninsured against future claims, even though they've paid for continuous coverage the whole time.
Prior Acts Coverage vs. Retroactive Date vs. Tail Coverage
| Concept | What It Does |
|---|---|
| Prior acts coverage | Extends a NEW policy backward to cover past work |
| Retroactive date | The specific cutoff date prior acts coverage reaches back to |
| Tail coverage | Extends an OLD, ending policy forward to allow late-reported claims |
Why This Matters When Switching Insurers
Businesses often shop claims-made coverage (professional liability, D&O, EPLI) purely on price and don't realize the new carrier's retroactive date only goes back to the day the new policy starts, unless prior acts coverage is specifically negotiated. Confirming the retroactive date matches your history, or negotiating full prior acts coverage, at the time you switch carriers is far cheaper and simpler than trying to fix a gap after a claim has already been filed.
How The Allen Thomas Group Can Help You
We'll help you understand exactly how prior acts coverage affects your coverage and cost, then shop your policy across 15+ A-rated carriers to find the right fit.
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