Agent E&O – Frequently Asked Questions

What is the difference between a claims-made policy and an occurrence policy?

  • Claims-made Policy coverage is activated when a claim is made, rather than when the wrongful act occurs

What triggers coverage on a claims made policy?

  • Claim must be made during the policy period
  • Claim must be reported during the policy period (most policies allow a 30 – 60 day period after policy expiration in which you can still report claims made during the policy period.)
  • The wrongful act must occur on or after the policy retroactive date

What is a retroactive date?

  • Date from which you can show continuous proof of E&O Coverage
  • THERE MAY BE ABSOLUTELY NO GAPS IN COVERAGE, NOT EVEN A SINGLE DAY

Why is a retroactive date important to maintain?

  • In order for a claim to be covered, it must occur on or before the retroactive date
  • Any claim of wrongful acts made prior to the retroactive date will NOT be covered