Covering Past Liability
Every person that has ever existed has made mistakes, and people will continue to do so indefinitely. In your mind, you have likely thought deeply about an incident that you wish could have turned out differently. This mental practice can drive specific individuals crazy because there is typically nothing that can be done retroactively. You are probably thinking of building a custom Delorean, but life does not always imitate art. In the insurance industry, there is a way to protect oneself from prior acts, and it involves prior actions of insurance. Prior acts insurance is seldom spoken about because the implications do not lend to many claims.
Understanding Prior Acts Insurance
For prior acts insurance to function correctly, the respective policy cannot contain a retroactive date. In this case, a claim can be filed for an act that took place at any point in time in the past. Since these cases are not that common, it is essential to already have some form of coverage before completing your application. This will make the application much more manageable and will put you in a better position to acquire the policy you seek. It is in the insurance agency’s best interest to not extend this policy to people that do not already have a form of liability insurance.