What is prior acts coverage in SAP FS-PM - Policy Management?

SAP Term: prior acts coverage

• Component: FS-PM

• Component Name: Policy Management

• Description: The extension of risk coverage by the insurer beyond the start of the contract in business liability insurance. This means losses can be insured that occured before the start of the insurance contract or where the cause of loss was set before the contract start.

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• Key Concepts: 
  Prior acts coverage is a type of insurance coverage that provides protection for claims that occurred before the policy was in effect. It is typically used to protect companies from liability for events that happened before the policy was purchased. 
  
  How to use it: 
  In SAP FS-PM Policy Management, prior acts coverage can be used to protect companies from liability for events that happened before the policy was purchased. The policy can be configured to provide coverage for a specific period of time, such as one year, or it can be configured to provide coverage for all events that occurred prior to the policy's effective date. 
  
  Tips & Tricks: 
  When configuring prior acts coverage in SAP FS-PM Policy Management, it is important to ensure that the policy is configured correctly and that all necessary information is included. Additionally, it is important to review the policy regularly to ensure that it is up-to-date and provides adequate protection. 
  
  Related Information: 
  For more information on prior acts coverage in SAP FS-PM Policy Management, please refer to the SAP Help documentation. Additionally, there are many resources available online that provide more detailed information on this type of insurance coverage.