Why it matters for your company
General liability is usually written on an occurrence basis, so the policy in force on the day of the injury answers even if the suit arrives years later. Tech E&O, cyber and D&O are usually claims-made, so the policy in force when the claim is made answers.
Claims-made coverage has two moving parts to watch. The retroactive date sets how far back the wrongful act can have happened, and switching insurers without carrying it forward can leave earlier work uninsured. When a company is acquired or shuts down, a tail (an extended reporting period) keeps late claims reportable.
Related terms
- Retroactive dateThe date on a claims-made policy before which a wrongful act is not covered, even if the claim is made during the policy period. Keeping it unchanged across renewals and insurer changes protects past work.
- Technology errors and omissions (tech E&O)Professional liability for technology companies: it responds when your product or service fails to perform and a customer suffers a financial loss. It is the anchor line for an AI or software company.
- Directors and officers insurance (D&O)Management liability that protects directors, officers and the company when leadership is sued over decisions made running the business. Term sheets often make it a closing condition at the first priced round.
- Retention and deductibleThe amount of a claim you pay yourself. With a deductible the insurer handles the claim and bills you back; with a self-insured retention you pay defense and loss up to the amount before the insurer steps in.