Nose Coverage

An endorsement purchased on a new policy that extends its retroactive date backward to cover prior acts that occurred before the policy's original inception date, effectively filling a gap left by a prior carrier's expired policy. Nose coverage is the mirror image of tail coverage—rather than extending the reporting window on an old policy, it extends the retroactive date on a new policy. Law firms switching carriers may choose between purchasing a tail from the departing carrier or negotiating nose coverage with the incoming carrier. Nose coverage is generally less expensive than tail coverage but may come with underwriting restrictions based on the firm's prior claims history.