Timing & trigger terms

Change of Control

A policy provision that is triggered when a company is acquired, merges, or transfers a majority of its voting control or assets, which typically converts its claims-made coverage, most often D&O, into run-off.

Also: change of control · change of control clause · change in control provision

Claims-Made vs Occurrence

Claims-made responds to claims first made and reported during the policy period for events after the retroactive date; occurrence responds to any event that occurs during the policy period.

Also: Coverage Trigger · Claims-Made Policy · Occurrence Policy

Effective Date

The date your insurance coverage begins.

Expiration Date

The last day your coverage is in force under the current policy period, after which the policy must be renewed, replaced, or allowed to lapse.

Also: insurance expiration date · policy expiration date

Extended Reporting Period (Tail / ERP)

A window after a claims-made policy ends to report claims for events that occurred during the policy.

Also: Tail Coverage · ERP · Tail Policy

Flat Cancellation

Cancellation of a policy as of its effective date, so no coverage was ever in force and the full premium is returned.

Also: flat cancellation · flat cancel · flat cancellation meaning

Inception Date

The date and time a policy's coverage officially begins.

Also: inception date meaning · policy inception date · inception date insurance

Policy Period

The dates your insurance coverage is active.

Prior Acts

Coverage for events that occurred before your current policy started but are claimed now.

Also: Full Prior Acts · Prior Acts Coverage

Reinstatement

Restoring a lapsed or canceled policy to active status, or restoring a policy limit after a claim.

Also: reinstatement meaning · policy reinstatement · reinstatement insurance

Renewal Policy

A new policy term issued to continue your coverage when the current term expires.

Also: policy renewal · how to renew an insurance policy · insurance renewal

Retroactive Date

The earliest date from which claims-made coverage applies.

Also: Retro Date · Prior Acts Date

Run-Off Insurance

Coverage that keeps a claims-made policy, most often D&O, responsive to claims made after a company is acquired, merges, or ceases operations, for wrongful acts that occurred before that transaction.

Also: run-off insurance · runoff coverage · run-off cover · tail coverage for M&A

Tail Coverage

An option that extends the time to report claims after a claims-made policy ends.

Also: Extended reporting period · ERP · Run-off coverage