Attorney Malpractice Insurance Retroactive Date vs Prior Knowledge Date
Introduction
When evaluating Lawyers Professional Liability (LPL) insurance, attorneys often encounter two important terms: retroactive date and prior knowledge date. Although they sound similar, these provisions serve very different purposes — and together, they determine whether a malpractice claim is covered.
What Is a Retroactive Date?
The retroactive date is the earliest date for which your policy will provide coverage for legal services. Any acts performed before that date are excluded from coverage, regardless of when the claim is made.
Example: If your retroactive date is January 1, 2018, and a claim arises from work you performed in 2017, it won’t be covered. But if the work was done in 2019 and the claim is made in 2025, it may be covered — provided you report it within the policy’s reporting requirements.
Think of it as: ‘How far back in time does my insurance look?’
What Is a Prior Knowledge Date?
The prior knowledge date focuses on what you knew and when you knew it. It excludes claims if you were aware — or reasonably should have been aware — of a potential problem before coverage began. This prevents lawyers from buying insurance after they already know a mistake has been made.
Example: If you knew in 2023 that you missed a filing deadline, but you purchased coverage in 2024, and the claim is made in 2025, the insurer can deny coverage. The reason: you had prior knowledge of the error before the policy began.
Think of it as: ‘Did I already know this could be a problem before buying insurance?’
The Importance of Answering the Application Truthfully
Every LPL application includes a critical question:
“Are you aware of any act, error, omission, or circumstance that could result in a claim against you?”
It’s essential to answer this truthfully. Failing to disclose potential claims — even if you think they may never materialize — can jeopardize your coverage later. The knowledge date does not give you permission to misrepresent facts on the application. If an insurer later learns that you knew about an issue and failed to disclose it, they may rescind the policy or deny coverage outright.
Why Both Dates Matter
For coverage to apply under an LPL policy:
1. The act must have occurred after the retroactive date, and
2. The insured must not have had prior knowledge of the issue before the prior knowledge date, and
3. The insured must have truthfully disclosed any known potential claims on the application.
These conditions ensure that coverage applies only to unknown, unexpected claims — not to past work outside the coverage window or to issues the attorney already anticipated but failed to disclose.
Understanding the distinction between retroactive dates, prior knowledge dates, and your duty to disclose is critical when reviewing your malpractice insurance. At L Squared Insurance Agency, we help attorneys across all 50 states navigate these provisions and secure the coverage they need to protect their practice.
Contact us today to review your policy and make sure you’re fully protected.
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Lee Norcross, MBA, CPCU
California License # 0D87292
L Squared Insurance Agency, LLC ® DBA in California as L2 L Squared Insurance Agency, License # 0L93416
Managing Director, CEO
Lee@L2Ins.com
616-726-7080
