What is a retroactive date?

A retroactive date in insurance, standardly when used within a Professional indemnity insurance policy refers to the date and time that your policy will respond to events that could arise in a claim.

Retroactive dates are also commonly used in Management Liability Insurance policies as well.

For example, if your retroactive date was today, then your Professional Indemnity Insurance policy would not cover you for claims made against you for actions or events that happened prior to today’s date.
If a notification, or incident that could arise which would trigger your Professional Indemnity insurance policy, the policy would only respond to events that occured on or after the retroactive date.

Standardly, you have the option to choose an unlimited retroactive date or specify a specific date.

Is an unlimited retroactive date more expensive?

If you opt for an unlimited retroactive date to cover for any events in the past, the premium could be more expensive as it offers a greater level of protection for your business.

It is important to note that when you are transferring to a different insurer at any point in time, some insurers will request to see proof of your previous retroactive date before they will match your previous date – whether it be unlimited, or a specific date. A specific date could be the date where you first took out insurance.

Morgan Insurance Brokers can assess your cover requirements, along with your budget to provide you with comprehensive quotes that will protect your business from the risks they face. Contact us today.