Nose Coverage

What Does Nose Coverage Mean?

Nose coverage is a feature in a liability policy that extends coverage to the professional acts of the insured that occurred before the policy was purchased. The period of time covered, known as the retroactive period, is specified in the new insurance contract.

Insuranceopedia Explains Nose Coverage

Nose coverage is an option for professions that are vulnerable to malpractice suits, such as medical professionals. Physicians perform procedures that may later lead to legal complaints, potentially jeopardizing their professional status. To protect against these malpractice risks, these professionals purchase liability insurance. It is usually offered as an add-on to a professional liability insurance policy when a doctor or other professional switches insurers and does not want to lose protection for work performed under the previous policy.

It is impossible to predict in advance which procedures may raise liability issues or when a claim might be made. This is why nose coverage is advantageous: at the time of purchase, it can cover the insured professional’s past procedures. For physicians weighing this option, the cost of nose coverage is often folded into the broader expense of doctors and physicians insurance, especially when changing carriers mid-career.