Continuous Coverage
Key Takeaway
An unbroken chain of claims-made insurance coverage maintained by switching directly from one policy to the next without any gap in protection. Continuous coverage preserves the earliest retroactive date and ensures that no period of past work is left uninsured.
Definition
An unbroken chain of claims-made insurance coverage maintained by switching directly from one policy to the next without any gap in protection. Continuous coverage preserves the earliest retroactive date and ensures that no period of past work is left uninsured. Even a single day without coverage can create a permanent gap in retrospective protection.
Why This Matters for Law Firms
Understanding this concept is essential for law firms because it directly affects how your coverage responds when a claim is filed. Misunderstanding policy structure terms can leave your firm exposed to uninsured losses, particularly during carrier transitions or when claims surface years after the underlying work was performed.
Example Usage in Context
A managing partner reviewing the firm's renewal materials might ask the broker: "Can you confirm our continuous coverage aligns with what we had under the prior carrier? We want to make sure there are no gaps in our retrospective protection."
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