Why it matters for your company
If your tech E&O retroactive date is the day you first bought the policy, a claim over code shipped a month earlier is outside it. Ask for full prior acts when you can, or a retroactive date at least as early as your first customer deployment.
The date is easy to lose. A new insurer may reset it to the new inception date unless the application asks for continuity, and the change sits quietly on the declarations page.
Related terms
- Claims-made and occurrence policiesAn occurrence policy responds to incidents that happen during the policy period, whenever the claim is filed. A claims-made policy responds to claims first made during the policy period, subject to its retroactive date.
- 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.