Unfortunately, you can’t go back and “backdate” an insurance claim if you didn’t have coverage when the loss happened. Backdating a property or liability claim means that the insured is claiming losses that happened prior to when the policy went into effect. However, there are types of policies that you may qualify for to get some of those prior losses covered.
Current policies
A current insurance policy only covers losses that occur during the policy is in place. If your company experienced a known loss prior to your insurance policy going into effect, that loss will not be covered.
If, however, you filed a claim under your current insurance policy and later discover another loss occurred prior to the start date of your policy, you may be able to file a claim. This depends on whether or not the second loss is considered an “advancement” of the first loss. If it is an advancement, you may be able to file an additional claim.
Claims-made policies
A claims-made policy can help cover losses that happened before the policy was in effect, but the insured was unaware of the risk or loss. If it’s proven that the company knew about the risk or loss prior to the insurance coverage, it will not be covered. This coverage is only for unknown risks and losses.
To be considered for this type of coverage, your insurer may require that you provide proof of insurance during this time to prove that you were not uninsured. Additionally, these policies typically only will cover the most recent 6-12 months.
Tail coverage policies
Tail coverage provides your company coverage after an insurance policy terminates so you are covered during the transition. For example, if you are switching your commercial auto insurance provider, you may obtain tail coverage to cover the time between.
Tail coverage is available for all commercial lines of insurance except workers’ compensation. Tail coverage can be used for any period of time up to 12 months and may be renewed in increments of six months. Tail coverage is available on an annual basis or as needed. The cost of tail coverage depends on the price of your current policy, the type of business you are in, and other factors.
The information provided above gives a thorough answer to this tricky question; however, the legal ramifications of backdating a claim are often more involved than it appears. The information provided above is intended to be used as a guide, but it may not address all of your questions. It’s always best to speak with an attorney regarding your specific situation and how backdating a property or liability policy may affect that claim.
