In insurance terminology, what does 'nose' refer to?

In insurance terminology, 'nose' specifically refers to the period between the retroactive date and the current starting date of a policy. This term is often used in the context of claims-made policies, particularly in professional liability insurance, where the retroactive date establishes the point in time from which claims can be made. The 'nose' extends the coverage of claims made that occurred during that period, bridging the gap between prior claims and the new policy period.

Understanding this term is critical for risk managers and healthcare professionals as it impacts the coverage of events that precede the current policy period, ensuring that they have a continuous protective measure in place for incidents that might be reported after the inception of the new policy but occurred during that transitional timeframe.