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