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backdated liability insurance

Backdated liability insurance is coverage procured for claims after a loss event has actually happened.

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This type of coverage is offered when the amount of the claim is very uncertain and potentially long delays in payment may result. The premium charged by the insurer, coupled with its investment value, is calculated to be sufficient to cover all the claims from the incident. This is not a commonly available type of coverage.

Related Terms

Retroactive insurance refers to insurance purchased to cover a loss after it has occurred.

Loss mitigation underwriting (LMU) is the process of providing insurance coverage for existing...