What Does Prior Insurance Mean?
Prior insurance is a type of policy that, when issued, covers acts that occurred before the date the policy was issued. This is mostly applicable to liabilities that took place in the past but are only legally acted upon once the policyholder has already purchased the policy.
Insuranceopedia Explains Prior Insurance
Most liability insurance only covers the policy period. Any risk that surfaces after or before that period is not covered. Most of them also specify a period in the past that it can cover (called the retroactive date). For example, if you buy liability insurance in December 2016, it might specify that it can cover an event that happened as far back as December 2012. But if someone holds you liable for an act that happened in November 2102, the policy won't cover you.
The prior acts coverage does not have a retroactive date. So, if someone holds you liable for any action in the past, this insurance has you covered.