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By Edita Abrudeanu, Founder & Principal Broker — Professional Insurance Experts, LLC
Navigating the Professional Liability Policy Maze: The Dates That Can Make or Break You
Forgetting one date could cost you your entire claim
Every professional liability policy looks the same — until a claim hits.
Then suddenly, dates matter more than dollars.
Architects, engineers, and attorneys often remember the limits and premium… but miss the one detail that can make or break coverage: the calendar.
Let’s simplify it — these are the critical dates you must understand before signing or renewing.
01. Effective Date — The Official Start Line
This is the day your coverage officially begins. Anything that happens before this date? You’re on your own.
Example:
You buy your E&O policy on January 25, but it doesn’t go into effect until February 1.
If a claim arises on January 28, the insurer won’t touch it.
Pro tip: Always double-check that your effective date aligns with your contract start date — and never assume your “purchase date” equals coverage.
02. Expiration Date — The Quiet Deadline
It’s the day your coverage ends. After midnight, your safety net disappears.
Many firms forget this and think there’s a “grace period.” There isn’t.
If a claim is filed even one day after expiration, and you haven’t renewed, coverage is gone.
Pro tip: Renew early. Aim for 30 days before expiration so there’s zero lapse — especially if you have upcoming deadlines or active projects.
03. Retroactive Date — Your Past-Life Coverage
Here’s where most people get tripped up.
The retroactive date (or “prior acts” date) decides how far back your policy protects you for work done before the current policy started.
Example:
Your firm has been in business since 2015. You bought your first E&O in 2018. That means your “retro date” is 2018.
If a client sues you in 2025 for a project you finished in 2016, you’re not covered — because the act happened before your retro date.
Pro tip: Never reset this date when switching carriers. Keeping your original retro date intact = keeping your history protected.
04. Split Retro Date — Two Limits, Two Timelines
This one hides in the fine print.
If your policy limits changed midstream (say, from $1M to $3M), your insurer may apply the higher limit only to incidents that occurred after that change.
So if a claim arises from work performed before the increase, you might still be stuck with the older $1M limit.
Lesson: Keep track of when you’ve raised your limits — and note it in your project files.
05. Knowledge Date — What You Knew, and When You Knew It
If you knew about a potential claim before your new policy started but didn’t report it to the old carrier, you’ve got a coverage gap.
Why? Because the new insurer excludes “known circumstances,” and the old one says, “You didn’t tell us in time.”
Result: nobody pays.
Pro tip: When in doubt, report it. It’s better to overreport and be safe than underreport and be uncovered.
06. Prior and Pending Litigation Date — No Coverage for the Past
This exclusion cuts off anything filed or pending before a certain date (usually your policy start date).
That means if an old lawsuit gets renamed or refiled, you’re still excluded.
It’s the insurer’s way of saying: “We’ll cover new problems — not old ones in disguise.”
07. Hire Date — Don’t Forget Your Team
If your firm’s policy covers multiple employees, each person’s “coverage start” begins on their hire date.
If they did any work before joining — even freelance — that work isn’t covered under your firm’s policy.
Always document this and make sure new hires complete onboarding before touching active projects.
08. The Calendar Is Your Coverage
These dates aren’t trivia — they’re your defense.
Most denied claims I’ve seen come down to one of three issues:
- Missed renewal
- Changed retro date
- Unreported potential claim
Every one of those could have been prevented by understanding the timeline.
Final Takeaway
Your E&O policy isn’t just about what it covers — it’s about when.
Think of it as a time machine: the dates decide how far back you can travel when a problem surfaces.
Keep your retro date locked, your calendar synced, and your renewals early.
Because when the claim comes, time’s up.
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