phrase
retroactive date
In plain English
The earliest date for which a claims-made policy will cover work — claims from work performed before this date are not covered.
When you switch claims-made carriers, the new policy's retroactive date determines whether your old work is covered. Lose continuity, lose coverage. The retro date is the most important number on a claims-made dec page after the limit.
What it covers
Work performed on or after the retroactive date and giving rise to a claim made during the policy period.
What it does not cover
It does NOT cover work performed before the retro date, even if all other policy conditions are met.
Where it trips people up
When changing carriers, the new carrier may require a new retro date matching your last claims-made policy's. Always negotiate to keep the original retro date — losing 5 years of prior coverage is expensive.
The technical version
The earliest date specified in a claims-made insurance policy for which coverage applies; claims arising from acts occurring before this date are not covered, regardless of when the claim is made.