Retroactive Date in PI Insurance: What It Means and Why It Matters
A retroactive date specifies when your PI insurance cover begins. Errors before this date aren't covered, even if reported later. Understanding retroactive dates is critical for ensuring coverage.
What Is Retroactive Date?
Retroactive date is the earliest date covered. Errors before this date are excluded, regardless of when discovered.
How They're Set
New policies: typically start on effective date. Switching insurers: usually carried forward from original start (continuous cover). Gaps in coverage: retroactive date may reset.
Why They Matter
Errors from before your retroactive date are completely uninsured. Critical if you let insurance lapse or lose continuous cover when switching.
Continuous Retroactive Cover
Retroactive date stays constant when switching insurers if you maintain continuous coverage. Valuable: covered for errors from original start even after switching multiple times.
Extended Retroactive Cover
Some policies offer extended cover back further than standard. Costs extra but provides broader protection for early work.
Ensure Coverage"Get insured on day one. Early errors are then covered forever. Starting late without extended cover leaves them uninsured permanently."
— Professional Risk Managers' Association
Frequently Asked Questions
a
a
a
a
a