Prior Acts Coverage

Coverage for claims-made policies (including Errors and Omissions Insurance) that includes events that happened before the insurance was purchased.

Some policies offer Full Prior Acts Coverage and others offer coverage that starts at a particular retroactive date. Businesses that have never purchased any Errors and Omissions Coverage are much less likely to qualify for Full Prior Acts Coverage.

Ex: A business is sued for software it sold two years ago. Its E&O Insurance has Prior Acts Coverage, which means the lawsuit will be fully covered even though the mistake occurred before it purchased an E&O policy.