Nose coverage

Making sure that past events don’t affect you now.

What is nose coverage?

Also known as prior acts coverage or retroactive date, nose coverage can protect you from future legal issues related to your past professional work. Coverage usually starts from the date you bought the insurance, meaning nose coverage doesn’t necessarily protect you from problems that happened before that date.

How does nose coverage work?

Let’s use an example:

Say you’re a management consultant and you buy professional liability insurance. Your nose coverage date is January 1, 2023.

You find out a client wants to sue you for negligence. However, you offered services to this client in December 2022. Because this is before the starting date of your nose coverage, the insurance company won’t cover any damages or legal fees.

But if it’s a client that you consulted for after the starting date, then the insurance company can give you coverage.

Nose coverage vs. tail coverage: What’s the difference?

These coverages are related but serve different purposes:

Nose coverage sets a specific date in the past (the retroactive date) when your insurance coverage begins. It protects you from claims related to incidents that occurred after this retroactive date and during the policy period.
Tail coverage, also known as an extended reporting period (ERP), allows you to report claims for incidents that occurred during the policy period but were reported after the policy expired or was canceled.

Tail coverage can protect you from claims made after your policy expires, while nose coverage can help cover you for mistakes made before you had coverage.

Why is nose coverage important for small businesses?

Nose coverage is significant for small businesses because it safeguards them from potential legal claims and liabilities related to past work — as long as it falls after the policy’s starting date. It helps protect their reputation, financial stability and peace of mind, allowing owners to concentrate on running and growing their businesses without worrying about unexpected legal issues arising from their past professional activities.

Get the coverage you need with NEXT

NEXT offers affordable, custom business insurance to suit your business needs. Simply answer a few questions online and receive your tailored instant quote within 10 minutes. Once you’ve purchased your insurance, you can immediately access your certificate of insurance and share it 24/7 via the NEXT app.

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Let’s find the coverage you need for your business

Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.

General Liability

Protect yourself from accidents that cause physical injury or damaged property.

Professional Liability or Error and Omissions Insurance

Professional Liability/E&O

Shield yourself from lawsuits that claim your work errors caused financial losses.

Workers’ Compensation

Cover medical bills and lost wages if your employees have an accident at work.

Commercial Auto

Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.

Tools & Equipment

Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.

Commercial Property

Keep your building, inventory and equipment protected from fire or water damage.

Business Owner’s Policy

Combine general liability and commercial property into one policy to protect your business.

* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.