Business Insurance
Prior Acts Coverage
Prior acts (nose) coverage sets the retroactive date on a new claims-made policy to match the old insurer's retroactive date, covering incidents from before the new policy started.
Last reviewed: May 2026 · Editorial methodology
Definition
Prior acts coverage — also called nose coverage — is a provision in a new claims-made policy that extends the retroactive date back to the original retroactive date of a prior policy, bridging the gap created when switching insurers. Without nose coverage, a business switching professional liability carriers would have the new policy's retroactive date set to the switch date, leaving prior years of work uninsured unless they also purchased tail coverage from the departing insurer. Nose coverage is typically less expensive than tail coverage from the old insurer, making it an attractive alternative — but it only works if the new insurer is willing to offer it based on underwriting review. Industries with long claim latency — medical professionals, architects, engineers, attorneys — benefit most from securing nose or tail coverage at every carrier transition. When evaluating prior acts offers, businesses should confirm the new retroactive date exactly matches the old policy's retroactive date, as even a one-day gap creates uncovered exposure. Some insurers condition prior acts coverage on a claim-free attestation covering the years to be backstated.
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Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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