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A retroactive date is a provision found in many (although not all) claims-made policies that eliminates coverage for claims produced by wrongful acts that took place prior to a specified date, even if the claim is first made during the policy period.
With the Prior Acts exclusion, a policy will not cover a claim if the event, the wrongful act, that gave rise to the claim occurred prior to the policy inception date or the 'prior acts exclusion date. '
A retroactive date defines how far back in time a loss can occur for your policy to cover your claim. If a claim happens prior to your retroactive date, your policy won't provide benefits. It's a feature of claims-made professional liability or errors and omissions insurance.
Prior acts coverage protects you back to your retroactive date. Full prior acts coverage refers to a policy that provides complete protection for your previous conduct, with no retroactive date.
Full prior acts coverage is a type of claims-made liability policy that does not contain a retroactive date and, therefore, covers claims arising from acts that took place at any time prior to the inception date of the policy?regardless of how far in the past.