Allowing a D&O insurance policy to lapse by even 24 hours forfeits 'prior acts' coverage, exposing corporate board members to personal liability for historical decisions. Discover claims-made policy mechanics.
Sarah Jenkins
Tech Procurement & FinOps Advisor
Commercial general liability policies cover events that occur during the policy period. In contrast, Directors & Officers (D&O) insurance covers claims filed against executives today for decisions made years ago, provided continuous coverage was maintained from the initial retroactive date.
If a D&O policy expires on December 31st and the renewal is executed on January 2nd, the 24-hour gap destroys the continuous coverage chain. Underwriters set the new retroactive date to January 2nd, leaving board members personally liable for any litigation arising from prior actions.
When selling a company or dissolving a subsidiary, purchasing a multi-year run-off tail policy protects former executives against shareholder suits filed post-acquisition.
Track D&O renewal deadlines, retroactive dates, and broker quotation windows in RenewOS 60 days in advance to guarantee seamless, gap-free executive protection.
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