Previous engineering work can sometimes be covered by a current Professional Indemnity policy, provided the policy’s retroactive cover and other terms allow it.
The key questions are:
- what retroactive date applies
- whether the work was previously insured
- whether the engineer knew of any potential claim or circumstance before the current policy commenced
- whether any earlier notification was made to a previous insurer
- whether the current insurer agreed to cover the historical work
This is different from simply asking which insurer was on risk when the work was performed.
With claims-made-and-notified cover, the current policy may respond to a claim arising from older work if the work falls within the retroactive period and no relevant exclusion or prior-known-circumstance issue applies.
Engineers arranging cover for an established practice should therefore disclose the business’s history and previous work so the retroactive position can be confirmed clearly.
