A continuity date refers to the earliest date from which a small business has maintained continuous insurance coverage.
A continuity date refers to the earliest date from which your claims-made insurance policy will protect you against a covered loss (a mistake, omission, or other action that harms a third party).
Depending on your situation, your continuity date may be the date your current insurance began or a date far in the past when you were insured with another company.
How far back your continuity date goes depends on whether you maintained coverage continuously:
If an incident occurs before the continuity date, your insurance policy won’t pay for the loss, even if you file a claim under your current coverage.
Continuity dates are necessary because claims-made insurance only pays for claims filed while an insurance policy is active.
Whether an incident happens under your current or previous policy, you will have insurance protection as long as it occurred after your continuity date. However, when you purchase a new policy, you must notify your current insurer that your existing claims-made insurance is still active.
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