Retroactive date
Also called Retro date or prior acts date
Definition
A retroactive date is the earliest date of work or events a claims-made policy covers, so anything that happened before it isn’t covered, even if the claim is new.
A claims-made policy covers claims made while the policy is active. The retroactive date limits how far back the work behind those claims can go. If the mistake or event happened before the retro date, the policy generally won’t respond.
How it works
A claims-made policy usually needs two things to line up:
- The claim is first made during the policy period, or during an extended reporting period.
- The work or event behind it happened on or after the retroactive date.
The retro date is shown on the declarations page. On a first policy, it’s often the same as the policy’s start date. If you renew without a break, the retro date usually stays put, so your coverage keeps reaching back to that first day. Some policies have no retro date at all, often called “full prior acts” coverage, though they may still exclude problems you already knew about.
Occurrence policies don’t use retroactive dates.
Why it matters for a small business
The most common mistake is losing your retro date when you switch insurers. If a new insurer sets a new retro date, years of past work can be left uncovered. When you move a claims-made policy, ask the new insurer to keep your existing retro date. If you can’t, or you’re closing the business, an extended reporting period can give you more time to report claims about past work.