What does Prior Acts Coverage cost?
Your first Claims-made policy will start out at a lower rate since there would be no prior acts to cover. As you see more clients and your exposure increases, so does the premium — for the next several years until you are at a “mature” rate level. If an attorney who is changing from one Claims-made policy to another wants to cover any future claims arising from previous legal work, he or she would purchase prior acts coverage at a more mature rate level, and a higher premium, than a first year attorney. For example, if he or she wants prior acts coverage for nine years of previous exposure, they would be at a mature rate level and pay a premium of approximately twice that of a first year rate level. If there is no prior acts date shown on a Claims-made policy, it means you have “full prior acts” coverage.
