What is the difference between Continuity Date and Retroactive Date in D&O Insurance?

A Retroactive Date is the earliest date for which the insured has the coverage under their liability insurance policies. Retroactive date pays for claims that occurred while an insured was covered by an insurance policy, even if the insured is no longer covered by that particular policy at the time you file the claim, as long as you have been continuously covered. Any act before the retroactive date stands disqualified.

A retroactive date is a restriction placed in an insurance policy that does not provide coverage for any claims that take place before the retroactive date. If a D&O liability insurance policy includes a retroactive date, it is basically the earliest date for which the coverage is provided or, in other words, it is as far back as your policy goes.

A Continuity Date is the earliest date from which the insured claims-made insurance policy will protect them against a specific covered loss. The nature of loss can be a harmful mistake, omission or any other type of action by a stakeholder.

Key difference between Continuity Date and Retroactive Date

The Continuity Date is the earliest date of continuous coverage favouring the insured.  On the other hand, the Retroactive Date is the earliest possible date when the insured can make a claim on the D&O policy.

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