What does the retroactive date in a Claims-Made CGL policy establish?

• A. Earliest date a claim will be paid
• B. Last date of incident coverage
• C. Date of policy issuance
• D. Date of claim filing

Answer: (A)

In a claims-made CGL policy, coverage depends on the timing of the claim, but there’s a time limit on which incidents can be covered. The retroactive date marks the earliest date an incident can occur for a claim to be eligible for coverage. If something happens before that date, it generally won’t be covered, even if the claim is made later. So the retroactive date effectively sets the earliest date from which an incident can trigger a covered claim that the insurer will pay, assuming the claim is reported during the policy period.

For example, with a retroactive date of January 1, 2020, incidents on or after that date can be covered if a claim is made and reported within the policy period; incidents before that date are excluded. This concept isn’t about the last date of incident coverage, issuance of the policy, or the date a claim is filed.