Prior acts coverage

As a small business owner, you know it’s important to understand how your insurance policy works.

A claims-made policy provides benefits only if you file a claim after the policy start date. If you cancel your policy and then report a claim, it will not be covered.

In this case, if you had a $1 million claims-made policy and are sued for $1 million in your first year, you’d no longer have coverage. That is, unless you increase your policy limit in the second year.

Occurrence-based and claims-made policies are often found in specific types of insurance coverage.

For example, claims-made policies will often be found in your directors and officers coverage and your professional liability insurance, which is also referred to as errors and omissions insurance.

If you’re just starting out, you may want a lower cost claims-made policy.

Get the right coverage for your small business with Insureon today. Click the link to get started.