What Does Nose Coverage Mean?
Nose coverage is a feature in a liability policy that covers the professional acts of the insured prior to the purchase of the policy. The period prior to the purchase that is covered, known as the retroactive period, is stipulated in the new insurance contract.
Insuranceopedia Explains Nose Coverage
Nose coverage is an option for professions that are vulnerable to malpractice suits, such as the medical professionals. Physicians perform procedures that may later bring about legal complaints, and strip them of their professional status. These professionals buy liability insurance to protect against these malpractice risks.
It can never be determined ahead of time which procedure can raise a liability issue or at what time a claim can be made. This is why nose coverage is advantageous: at the moment of purchase, it can cover the past procedures of the insured professional.