How Claims-Made Coverage Works
Professional liability protects the work you did years ago, but only if your coverage stays continuous and your retro date stays put. Here is the whole picture on one timeline.
From Contract to Claim to Tail.
Step through a typical project, then tap a “what if” to see how the same claim plays out when something changes.
Check Your Own Retro Date.
Enter what you know. Your timeline shows whether older projects stay protected or a gap may open.
General education, not a statement of coverage or legal advice. Whether a claim is covered depends on your policy wording, the facts and the insurance company. Retro date, prior acts and tail options vary by carrier.
Claims-Made Coverage: Common Questions
What is a retroactive date?
The earliest date your work can have been done for a claim about it to be covered. It is on your declarations page. Keeping the same retro date through every renewal and every carrier change is what keeps older projects protected.
What does claims-made mean?
The policy in force when a claim is made against you is the one that responds, as long as the work happened after the retro date. That is different from general liability, which usually responds to when the injury or damage happened.
What happens to my retro date if I switch carriers?
It depends on what the new carrier offers. Many will match your current retro date if you show continuous coverage. Some cheaper policies start a new retro date on the switch date, which can leave years of past work uncovered.
What is tail coverage or an extended reporting period (ERP)?
Extra time to report claims after a claims-made policy ends, about work done before it ended. Firms usually buy it when they close, retire, merge or sell. Lengths and prices vary by carrier and are often only offered when the policy ends.
Does my contract affect how long I need coverage?
Often, yes. Many contracts require you to keep professional liability for several years after the project is finished. With claims-made coverage, that means renewing without a gap, or buying a tail if you stop.
Is a lapse of a few weeks a problem?
It can be. Some carriers treat any gap as a break in continuous coverage and set a new retro date. Renew before the expiration date, and talk to us before letting any policy lapse.
Definitions: Claims-made · Retro date · Prior acts · Tail (ERP)
Switching or Renewing? Send Us Your Declarations Page.
We check the retro date, prior acts and tail options before anything changes, so older projects stay protected.