Prior acts coverage refers to coverage for acts, errors or omissions that occurred prior to the policy's inception date.
The retroactive date is typically the date the client started practicing law and initiated their first professional liability policy. It is the earliest date that an act, error or omission may occur which will be covered by the policy if a claim is made.
Full prior acts coverage means that there is no retroactive date on the policy. The insured is covered for all acts, errors or omissions giving rise to a claim that may have arisen prior to the policy inception date. Full prior acts coverage is an important provision when changing professional liability policies as it extends coverage to claims that are reported during the new policy period but occurred during the previous policy period.