Design and Construct Professional Indemnity Insurance is generally written on a claims-made basis. Broadly, the policy in force when a claim is made, or a relevant circumstance is notified, is usually the policy considered, subject to its wording and applicable law.

What does claims-made cover mean? #

A claim can arise years after the professional services were performed. The business generally needs an appropriate policy in place when the claim is first made and must notify it within the required timeframe.

Potential circumstances should be reported promptly. Do not wait for formal legal proceedings before asking Webber Insurance whether notification is required.

What is a retroactive date? #

The retroactive date identifies how far back covered professional services may have been performed. It may be:

• The date the business first arranged Professional Indemnity Insurance.
• A specified historical date.
• Unlimited.

The applicable date should appear on the policy schedule.

Why should the retroactive date be maintained? #

When changing insurer, accepting a later retroactive date can create a gap for earlier work. A claim made today may relate to design or professional services completed several years ago.

Provide the expiring policy schedule and full history to Webber Insurance so continuity can be checked.

What happens if the policy is cancelled? #

Cancelling cover can leave the business exposed to claims made later about completed work. This can remain relevant after projects finish, the business stops providing design services, the company is sold or the business closes.

Run-off cover may therefore need to be considered. The required period can be affected by contracts, statutory requirements and the time during which claims may arise. Obtain advice before cancelling or materially changing the cover.