A retroactive date is the earliest date from which work can generally be considered for cover under a claims-made insurance policy.

It is particularly important for policies such as Professional Indemnity Insurance.

How does a retroactive date work? #

For example, if a Professional Indemnity policy has a retroactive date of 1 July 2020, work performed before that date may fall outside the policy’s retroactive cover.

Work performed on or after that date can potentially be considered, subject to the other policy terms.

The claim must also satisfy the applicable claims-made and notification requirements.

What does an unlimited retroactive date mean? #

An unlimited retroactive date generally means there is no specified date restricting how far back insured professional work can have been performed.

It does not mean that every claim relating to previous work is automatically covered.

Cover can still depend on matters such as:

• When the claim was first made
• Notification requirements
• Known circumstances
• Previous insurance
• Insured professional services
• Exclusions
• Policy limits and excesses

Why is continuity important? #

When changing insurers or renewing a claims-made policy, it is important to check that previous work remains appropriately covered.

Accepting a later retroactive date can create a gap for earlier work.

You can also read more about claims-made insurance.

Contact our team before changing a retroactive date or allowing claims-made insurance to lapse.