Full Prior Acts Coverage

Full Prior Acts Coverage is an insurance policy provision that provides coverage for claims that arise from events that occurred prior to the policy's effective date, as long as the insured was unaware of those events at the time the policy was purchased. This provision is typically used in liability insurance policies, such as professional liability insurance.

Key features of Full Prior Acts Coverage include:

• Coverage for past acts: This provision provides coverage for claims that arise from past acts, errors, or omissions that occurred prior to the policy's effective date.

• Retroactive date: Full Prior Acts Coverage has a retroactive date that specifies the date from which the coverage applies. Claims arising from events prior to this date are not covered.

• Unawareness requirement: To qualify for coverage under Full Prior Acts Coverage, the insured must have been unaware of the events that gave rise to the claim at the time the policy was purchased.

• Higher premium: Policies with Full Prior Acts Coverage typically have higher premiums than policies without this provision, due to the increased risk associated with providing coverage for past acts.

In terms of how Full Prior Acts Coverage impacts employee benefits, it can provide valuable protection for employers and employees who work in professions where errors and omissions can occur, such as healthcare providers, financial advisors, and attorneys. By providing coverage for past acts, Full Prior Acts Coverage can help protect employers and employees from the financial burden of defending against a claim arising from a past mistake or oversight.

‍