What does backdated liability insurance mean?

backdated liability insurance meaning in Insurance Dictionary

Coverage procured for statements after a loss event has actually taken place. This type of coverage exists as soon as the level of the claim is very unsure and possibly lengthy delays in payment may end up. The advanced recharged because of the insurer, along with its investment price, is calculated to be enough to cover most of the statements from the event. This is not a frequently available variety of protection. See in addition Retroactive insurance; Loss minimization underwriting.