A continuity date is the earliest date from which an insurance claim can be filed and covered by a claims-made insurance policy. It marks the starting point for coverage. Claims from events before the continuity date are typically not covered.
Common types of claims-made policies that include a continuity date include:
The continuity date in your small business insurance policy is set by the insurer and is based on the policy start date. This date, which can vary depending on your business type, risk tolerance, and claim frequency, defines the incidents that can be claimed.
When renewing or switching insurers, you can negotiate this date to ensure continuous coverage and address any concerns about business liabilities.
Keep in mind that opting for retroactive coverage might increase your premiums due to the higher risk involved. You’ll typically pay a deductible upfront before your coverage begins.
Small businesses need to maintain accurate and thorough documentation to effectively track and prove their continuity date to the insurance provider. This includes:
Failing to renew your policy by the continuity date can result in coverage gaps, leaving emerging claims unprotected.
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